Argentina imposes further capital controls; sharply cuts USD buying limits to $200 a month

The central bank of Argentina has further imposed restrictions on U.S. dollar (USD) purchases to “maintain exchange stability and protect reserves.”

Individual Argentinians will now be limited to USD purchases of $200 per month, a steep drop from the previous $10,000 per-month limit, according to a statement published by the central bank on Sunday. Any amount beyond the new limit will require special permission.

The $200 limit is for individuals with a bank account, while for cash purchases and for non-residents, the limit is $100. These limits are not cumulative, per the statement.

“People who bought more than USD 200 in October and less than USD 10,000 will not be penalized,” said the central bank.

The capital control measures in Argentina have seemed to help cryptocurrency adoption in the country, with volumes picking up. Several cryptocurrency exchanges have either launched or are planning to launch their operations in the South American country. Earlier this month, Mexican crypto exchange Bitso raised funds to expand in Argentina, among other markets. Huobi also announced its plans to launch a crypto exchange in Argentina; Binance as well recently hinted at launching a fiat-to-crypto platform in the country.

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Yogita is a senior reporter at The Block and covers all things crypto. Before joining The Block, Yogita worked for CoinDesk and The Economic Times. She can be reached at [email protected] Follow her on Twitter @Yogita_Khatri5.