LatinNews Daily - 26 November 2021 |
ARGENTINA: Dollar shortage drives new travel restrictions |
On 25 November, 24 hours before the start of ‘Black Friday’ online discounts, the Argentine central bank issued an order prohibiting the sale of holidays and foreign travel through credit-card based quotas. Analysis At this time of year many Argentines are planning their summer holidays. Credit card companies, airlines, and travel agents usually offer payment of foreign holidays in quotas. However, concerned over its dwindling US dollar reserves the central bank (BCRA) has banned such payments. In normal times there is a net annual foreign currency outflow of US$5bn on the tourism account, as the expenditure by Argentines travelling abroad exceeds that by foreign tourists visiting Argentina. The latest measures are intended to cut back that net outflow
Looking Ahead: Since the proposed rescheduling would extend well beyond the current government’s remaining two years in office, an agreement with the political opposition is seen as an essential part of the solution. There is, however, little sign of the expected cross-party talks, which increases the possibility of further delays and foreign currency restrictions. |