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LatinNews Daily - 29 November 2021

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In brief: Argentina’s credit restrictions for foreign travel necessary ‘to prevent devaluations’

* Argentina’s Productive Development Minister Matías Kulfas has defended the central bank’s decision to prohibit the sale of holidays and foreign travel using repayment plans. Kulfas tweeted that “in the unprecedented context of two crises that we [the Alberto Fernández administration] did not cause – that of 2018-19 and the [coronavirus] pandemic – protecting the few US dollars that our economy has is an act of social responsibility.” Kulfas added that “it would be irresponsible for the State to finance an activity that costs us so many dollars,” warning that dwindling foreign currency reserves “increase the risks of devaluation” and that “the great majority of economic crises occur due to a lack of dollars, which triggers devaluations and reductions in the majority of the population’s purchasing power”.