|Argentina to Stop Buying US Dollars|
|by Tom McGregor||Thu, Jun 7, 2012, 06:09 PM|
President Christina Fernandez of Argentina is declaring an executive order to forbid her fellow citizens from purchasing U.S. dollars for their personal savings accounts. She is demanding all holdings of the dollar switch to the Argentine peso.
The BBC News reports that, “she said she would move her only remaining dollar account and urged officials to do the same. High inflation, officially at 9.8%, but unofficially at about 25%, means many Argentines see dollars as a safe bet.”
Ironically, the government needs dollars to maintain central bank reserves in order to curb capital flight.
On Wednesday, President Fernandez said, “I’ve just had one fixed term account in dollars for some time. And I’ve decided to put in pesos. It’s more profitable to have it in pesos.”
According to the BBC, economic crises in Argentina’s recent history mean many view the U.S. dollar as a safe haven, and some keep part of their wealth outside of the country.”
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