Argentina to tighten import controls to protect {dollars} By Reuters

By Eliana Raszewski

BUENOS AIRES (Reuters) – Argentina will regulate import authorizations extra carefully in an effort to stop fraud and protect reserves of U.S. {dollars}, Financial system Ministry sources mentioned on Saturday.

The brand new system will embrace verification that the scale of an importer’s request is in line with its monetary assets; requiring importers to designate just one checking account for overseas commerce and extra exact timing for importers’ purchases of arduous foreign money from the central financial institution, the sources mentioned.

The federal government will publish an in depth decision within the coming days and it’ll take impact on Oct. 17.

“That is to convey order to the system and keep away from irregularities,” mentioned one of many sources accustomed to the plan.

Given restricted central financial institution reserves of U.S. {dollars}, the federal government desires to be sure that arduous foreign money is used for authorized imports that improve home output.

The reserves stand at $36.55 billion, the central financial institution reported Thursday.

In Argentina, the greenback is value 88% extra in Argentine pesos in different monetary markets than beneath the official charge, which is used to pay for imports. This entices some importers to overcharge or duplicate authorization requests, mentioned one of many sources.

“Given the hole, it is vitally tempting to entry the greenback within the official market, which is why there are schemes to build up pointless stock,” defined the official, who requested to not be recognized. “Some importers improperly attempt to get hold of as many items as doable utilizing the official greenback.”

The brand new system will even permit small and medium-sized firms to cut back the timeframe for import funds from 180 days to 60 days.