26 October 2011

ARGENTINA : Oils, Mines Ordered To Sell Dollars Locally...To Fight Capital Flight.

                                          REUTERS

     Just days after her landslide victory...President Cristina Fernandez has ordered oil, gas and mining companies to deposit ALL their export revenue on the local foreign-exchange market...because central bank reserves have dwindled from recent capital flight.
     The central bank has been forced to sell billions of dollars on the currency market since August to stem the peso's losses.
     Some economists estimate that Argentina has suffered at least $73bn capital flight in the past 4 years...and $20bn so far in 2011. 
     Previously...oil and gas firms had only been required to repatriate 30% of their export revenue in dollars...while miners had no requirements.