some people are taking advantage of arbitrage opportunities by bringing dollars from Uruguay into Argentina, selling them on the black market for pesos, and either spending the pesos in Argentina or converting the pesos back into dollars in Uruguay at the official rate and pocketing the difference
Summary
As Argentina's economic situation deteriorated over the past several years, Argentines flocked across the border to Uruguay to bank and invest. This has presented Uruguay with economic opportunities but also has exposed the small nation to considerable collateral risk and economic distortions that have compelled Buenos Aires and Montevideo to take corrective action. To prevent Argentines from pouring dollars into Uruguay and then pulling dollars out of the country en masse, potentially triggering a repeat of Uruguay's last crisis, the Uruguayan government has implemented capital controls and is considering adding more.
Posts
No comments:
Post a Comment
___________________________________
Commented on The MasterFeeds