Greenback withdrawals have been restricted in order to preserve the reserves of the central bank. "Seeking dollars desperately": for months, an obsession of the greenback touches the Argentinians, as the government tightens controls on foreign currency purchases.
Restrictions applied since October, forcing the Argentines to obtain special permission for each withdrawal of dollars, was added a series of restrictive measures on travel abroad, imports and remittances outside the country.
The aim is to preserve of central bank reserves (47 billion) under pressure due to the reduction of current account surplus (government expenditure increase by an average of 30% against 26% for recipes) while Argentina still has no access to international credit for refinancing as a result of defaulting on its debt in 2002. For now, these measures were successful in slowing capital flight, increased from $ 8.4 billion in the third quarter 2011 to 1.6 billion in the first quarter of the year. But this at the cost of a dollar surging parallel. The authorities had to call the police to close the illegal exchange bureaus that have exploded in the center of Buenos Aires, and beautiful golden retrievers have been specially trained to "smell" (illegal) greenbacks.
Inflation between 25% and 30%: The government is trying to change attitudes, while a large part of economic life is pegged to the dollar. The president, Cristina Kirchner , announced that she would change the dollar savings account in pesos, to give the "good example", calling her "friends, business owners and employees" to do the same. She is not sure that's enough to calm the fears of his countrymen. For the leading economist Rogelio Frigerio, "the problem is not the dollar, but the peso and inflation." The latter, always overshadowed by the authorities, running between 25 and 30% per year for an estimated private practice, no incentive to save in the Argentine national currency.
While officials of the central bank minimizes the problem of soaring dollar parallel, the haunting of the country is experiencing a new "corralito" blocking of bank accounts and a devaluation, as during the 2001-2002 crisis. Control of sales of foreign currency has also been called "corralito verde" by the Argentines, who took to the streets of Buenos Aires last week by tapping their pans in protest.At the (inverse) beauty conquest of the ugliest currency, it seems like the USD is failing to get anywhere close to the top. This is another thing that (hyper)-inflationists have missed: many currencies will collapse well before the USD, and these collapse will force people to turn themselves to the least ugly choice, and so far, there isn't anywhere to turn but the USD (and maybe the SGD, but there aren't enough of these). I'm not counting the CHF and JPY as the central bankers of these countries are even more mad than Ben Bernanke, and one way or another, they will collapse before the USD does.