Argentina's Third Extension Of The Policy Of "Washing The White" Of Private Non Declared Foreign Exchange

In order to alleviate the predicament of accelerating the drain of foreign reserves, the Argentina government issued an official communique 1 days ago. It announced that it would extend the policy of private non declaration of foreign exchange funds through the issuance of "investment and savings warrants" and "economic development savings bonds" for another three months, P. < /p >
< p > the official communique stated that this policy aimed at the non declared foreign exchange funds less than a href= "http://www.91se91.com/news/index_c.asp" > legalization < /a > said that the policy mainly targeted at foreign exchange funds held by residents at home and abroad, and the funds absorbed by the policy were mainly used for supporting productive and social planned financing for economic growth. < /p >
< p > with the accelerated loss of Argentina's "a href=" http://www.91se91.com/news/index_c.asp "outer storage" /a, Argentina's capital construction projects such as infrastructure, energy and real estate have been seriously affected. The Argentina government began issuing "investment and savings warrants" and "economic development savings bonds" in July 1st last year to attract private non declared foreign funds, hoping to raise about 4 billion US dollars for the expansion of foreign reserves. < /p >
< p > this policy has been released since July last year and has been the third extension, but the market is not positive about this feedback. According to Argentina media reports, as at the end of March, the a href= "http://www.91se91.com/news/index_c.asp", which was absorbed by the policy, was only 650 million US dollars in foreign exchange funds, which was far from the expected target. < /p >
< p > analysts pointed out that, compared with the accelerated drain of foreign reserves in Argentina, the funds absorbed in the legalization of underground foreign exchange funds were only a drop in the bucket. According to the latest data from the central bank, the central bank's foreign exchange reserves as at the end of March were 26 billion 939 million US dollars, the lowest record since August 15, 2006. < /p >
< p > in view of the cyclical malign inflation and economic crisis in Argentina's history, Argentines lack confidence in their financial system and local currency, so saving foreign exchange has become an important means for most people to store their value. According to media reports, the total amount of private foreign exchange savings declared at home and abroad in Argentina is now estimated at around us $200 billion. < /p >