Argentina central bank to use ‘full force’ to tame FX markets, source says


BUENOS AIRES, July 19 (Reuters) – Argentina’s central bank will use its “full force” to rationalize runaway demand for dollars and tame the country’s volatile parallel foreign exchange markets, which have heated up due to tough capital controls, a bank source told Reuters on Monday.

Earlier this month the bank tightened rules on companies accessing dollars in alternative foreign exchange markets, part of a bid to limit parallel trades where individuals and firms pay a steep premium for hard currency.

The bank source, declining to be named, told Reuters the bank would wait and see how effective the measures it had taken were before deciding if more restrictions were needed. Dollars trade for around 170 pesos on popular parallel markets, versus the official rate of around 96 pesos .

“We are using our full force to rationalize the demand for dollars,” the person said. “We will continue on this track.”

Many companies and individuals in the South American…

Read more…