Argentinians are eager to take advantage of new rules allowing them to purchase US dollars, but say they are leery of entrusting their coveted greenbacks to the nation's banks.
Monday was the first day in more than two years that people in Argentina have been allowed to purchase US currency through official channels, cash which the government said could be used "for spending or saving."
But people in this South American country are still traumatized by the 2001 economic meltdown which wiped out the savings of millions of middle class workers and saw the end of the peso's fixed exchange rate to the dollar.
Once burned, twice shy, many people in Argentina say.
"Put my dollars in a bank account? Not on your life!" one listener told the popular Radio Mitre, a station which skews against the populist politics of Peronist President Cristina Kirchner.
"This is all a trap, they want to rob us," said the caller, using the anonymity of radio to voice a sentiment felt by people across the nation.
Beginning this week, Argentinians could swap pesos for $2,000 in a hard currency such as US dollars each month at the official rate, as the government put an end to an unpopular restriction that sought to stem capital flight and stabilize the habitually wobbly peso. People were permitted to apply to swap up to 20 percent of their monthly pay for greenbacks.
Nearly 150,000 people applied for the US currency Monday, seeking a total $72.4 million, said Jorge Capitanich, head of Kirchner's cabinet, who said however that the government thus far had agreed to disburse just $122,773.
That paltry payout added to the skepticism of Argentinians who are reluctant to leave their savings with the government.
"The government had requests for $70 million and paid out just $120,000!" said an incredulous Daniel Salgueiro, 38, a bar owner who said he was frustrated that even though the government had eased restrictions on purchasing dollars, he still is unable to buy as freely as he'd like.
"It's a farce," Salgueiro said, smoldering with indignation.
"First they don't let you buy the amount of dollars that you'd like, and then they make you deposit them in the bank."
Dollars for average people have been a hedge against rampant inflation that has been a frequent scourge in Argentina.
Last week, the Argentine currency lost 15 percent of it value, despite official efforts to bolster it. The government removed the despised currency restriction in a bid to restore confidence and stabilize the market.
The Argentine currency was stable Tuesday, trading officially at eight pesos per dollar, and 12.20 peso on the black market.
But even if the peso stabilizes, the government needs to get inflation -- running at around 26 percent a year -- under control if it hopes to win the confidence of the average citizen.
"This is all a trap," scowled Amalia, 36 a hairdresser in Buenos Aires.
"They put obstacles in place making it hard to buy dollars and at the end of the day, they send you to tax authorities for an 'adjustment'," she said.
Further eroding confidence is the government's inability to figure out how to increase the central bank's dollar reserves, which have fallen from $52 billion to $29 billion in just three years.
The current period of economic uncertainty comes 12 years after Buenos Aires roiled financial markets by defaulting on nearly $100 billion in bonds, unleashing a tidal wave of capital flight and runaway inflation.
Like many of her countrymen, Amalia was burned by the 2001 crash, unable to access her hard-earned money after banks in Argentina clamped down on withdrawals.
Others here said they would like to have access to dollars, but don't meet the income requirement of more than $900 (7,200 pesos) a month imposed by the government under the new rules.
Economists say only about half the population meets that requirement.
Officially a retiree, Jose Maria Martinez, 74, said he still needs to work side jobs to make ends meet.
"Before, I used to buy dollars, but now, I no longer have the means," he said.
For all its detractors, the government does have some supporters.
Sebastian Villareal, 28, a student majoring in psychology, is an ardent defender of Kirchner's economic policies, and said as far as he can tell, not too many people have been hurt by the recent currency devaluation.
"It's not a measure taken against the people, nor against business, but it is a measure that aims to stabilized the economy," Villareal said.
Argentinians are eager to take advantage of new rules allowing them to purchase US dollars, but say they are leery of entrusting their coveted greenbacks to the nation’s banks.
Monday was the first day in more than two years that people in Argentina have been allowed to purchase US currency through official channels, cash which the government said could be used “for spending or saving.”
But people in this South American country are still traumatized by the 2001 economic meltdown which wiped out the savings of millions of middle class workers and saw the end of the peso’s fixed exchange rate to the dollar.
Once burned, twice shy, many people in Argentina say.
“Put my dollars in a bank account? Not on your life!” one listener told the popular Radio Mitre, a station which skews against the populist politics of Peronist President Cristina Kirchner.
“This is all a trap, they want to rob us,” said the caller, using the anonymity of radio to voice a sentiment felt by people across the nation.
Beginning this week, Argentinians could swap pesos for $2,000 in a hard currency such as US dollars each month at the official rate, as the government put an end to an unpopular restriction that sought to stem capital flight and stabilize the habitually wobbly peso. People were permitted to apply to swap up to 20 percent of their monthly pay for greenbacks.
Nearly 150,000 people applied for the US currency Monday, seeking a total $72.4 million, said Jorge Capitanich, head of Kirchner’s cabinet, who said however that the government thus far had agreed to disburse just $122,773.
That paltry payout added to the skepticism of Argentinians who are reluctant to leave their savings with the government.
“The government had requests for $70 million and paid out just $120,000!” said an incredulous Daniel Salgueiro, 38, a bar owner who said he was frustrated that even though the government had eased restrictions on purchasing dollars, he still is unable to buy as freely as he’d like.
“It’s a farce,” Salgueiro said, smoldering with indignation.
“First they don’t let you buy the amount of dollars that you’d like, and then they make you deposit them in the bank.”
Dollars for average people have been a hedge against rampant inflation that has been a frequent scourge in Argentina.
Last week, the Argentine currency lost 15 percent of it value, despite official efforts to bolster it. The government removed the despised currency restriction in a bid to restore confidence and stabilize the market.
The Argentine currency was stable Tuesday, trading officially at eight pesos per dollar, and 12.20 peso on the black market.
But even if the peso stabilizes, the government needs to get inflation — running at around 26 percent a year — under control if it hopes to win the confidence of the average citizen.
“This is all a trap,” scowled Amalia, 36 a hairdresser in Buenos Aires.
“They put obstacles in place making it hard to buy dollars and at the end of the day, they send you to tax authorities for an ‘adjustment’,” she said.
Further eroding confidence is the government’s inability to figure out how to increase the central bank’s dollar reserves, which have fallen from $52 billion to $29 billion in just three years.
The current period of economic uncertainty comes 12 years after Buenos Aires roiled financial markets by defaulting on nearly $100 billion in bonds, unleashing a tidal wave of capital flight and runaway inflation.
Like many of her countrymen, Amalia was burned by the 2001 crash, unable to access her hard-earned money after banks in Argentina clamped down on withdrawals.
Others here said they would like to have access to dollars, but don’t meet the income requirement of more than $900 (7,200 pesos) a month imposed by the government under the new rules.
Economists say only about half the population meets that requirement.
Officially a retiree, Jose Maria Martinez, 74, said he still needs to work side jobs to make ends meet.
“Before, I used to buy dollars, but now, I no longer have the means,” he said.
For all its detractors, the government does have some supporters.
Sebastian Villareal, 28, a student majoring in psychology, is an ardent defender of Kirchner’s economic policies, and said as far as he can tell, not too many people have been hurt by the recent currency devaluation.
“It’s not a measure taken against the people, nor against business, but it is a measure that aims to stabilized the economy,” Villareal said.
