Ever since Argentina crashed out of it’s exchange rate peg to the US dollar strict currency controls have been in place to protect the Argentine Peso’s value. However, signs are beginning to show of the strain this practice is having on the Argentine economy.
Many British expats living in Argentina will be struck by the country’s many contradictions. Sitting in the cafes of cosmopolitan Buenos Aires reading the musings of erudite and outward looking journalists one might be excused from thinking that Argentina is another contemporary European capital merely transplanted into the south Atlantic.
However, Argentina maintains strict economic controls designed to avoid a repeat of its economic crisis of the early part of the 20th century. Anybody wanting to convert Argentine pesos into a different currency needs to submit a formal online request to Argentina’s equivalent of HMRC the AFIP.
Argentine national debt has increased significantly since the launch of the Kirchner social programmes designed, some say, to create a clientelist constituency guaranteeing continued power for the President.
This provoked fear in Argentina's middle classes prompting a massive increase in capital flight. This in turn has meant the Government has cracked down even further meaning ever greater negative pressure on an economy already underperforming on many measures.
Expats wanting advice on managing their assets should consult an IFA to get the very best impartial advice.