2/2
© Reuters. FILE PHOTO: A man shows Argentine pesos outside a bank in Buenos Aires’ financial district

2/2

By Hugh Bronstein and Cassandra Garrison

BUENOS AIRES (Reuters) – Argentina’s battered bonds and currency were driven still lower on Friday amid downgrades by three credit ratings agencies and a new central bank policy that some private economists said hinted at a return to capital controls.

“Financial entities must get prior authorization from the central bank to distribute their results,” the central bank said in a statement without elaborating.

Central bank spokesmen could not be reached immediately for further comment.

“The central bank is not allowing them to distribute results, that means they cannot use their pesos. This is not a restriction of access to the FX market, but on the availability of pesos,” a source familiar with the central bank plan told Reuters.

“The central bank wants banks to be very well capitalized right now,” added the source, who requested anonymity because he was not authorized to speak to the media.

The latest round of tumult to plague Latin America’s No. 3 economy started with the Aug. 11 primary election, in which business-friendly President Mauricio Macri got soundly thumped by center-left Peronist challenger Alberto Fernandez.

The general election, with Fernandez now the clear front-runner, is in late October.

(Hugh Bronstein, Cassandra Garrison, Walter Bianchi, Gabriel Burin and Hernan Nessi in Buenos Aires; Rodrigo Campos in New York; Editing by David Gregorio and Tom Brown)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  What’s the Help to Buy Isa scheme? Deadline, how to open one and age limit

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here