In last phase of October 2011, subsequent to wasting 1 billion of dollar reserves in one month, the Argentine authorities commenced commanding a streak of currency controls, restraining the power to procure foreign currency.
As of October 2011, Argentina's tax collection agency AFIP had been given the capacity to endorse or decline all requests to buy dollars with pesos in the banking system in Argentina. By June 2012, AFIP had eliminated "saving" as a rightful elucidation.
While the official exchange rate was forthcoming six pesos to the dollar, the black market needed practically ten pesos to the dollar-a practically 65% variance. These were not the primary currency constraint that Argentina had imposed on its citizens.
PUBLICATION DATE: December 04, 2013 PRODUCT #: 714036-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
Related Case Solutions & Analyses:
David Melcher
General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D)
American Barrick Resources Corp.: Managing Gold Price Risk
NEC
ABB Deutschland (A)
McCaw Cellular Communications Inc. (B)
De-Biasing Discussion
Hungary: Economic Crisis and a Shift to the Right
Safety Regulation and the Rise of Towngas in Hong Kong
China: To Float or Not to Float? (A), Spanish Version
