
November 2, 2023
Currency Headache in Argentina: Chilling Effects of FX Controls
A new regulation makes some blue-chip swaps, used to move trapped cash out of the country, less attractive. In the run-up to Argentina’s Oct. 22 general elections, the government body that regulates markets issued an official bulletin that has effectively limited outflows of Argentine pesos (ARS). In recent NeuGroup meetings, corporates and regional experts said the regulation increased the perceived legal risk of blue-chip swaps, a type of international asset trade where a multinational in Argentina typically uses local currency to buy sovereign…