The Argentine peso plunged 3.2 percent Wednesday as the country cracked down on online purchases from abroad in an attempt to stem capital flight and battle dwindling foreign reserves.
The sharpest one-day fall in the official exchange rate in years took the dollar over the 7 peso level, compared to just five pesos a year ago, and brought its loss since 2014 began to 8.4 percent.
On the black market, the peso sank to a new low of 12 pesos per dollar, as the supply of greenbacks tightened.
The country's foreign reserves sank by $200 million as the central bank spent dollars trying to ease the peso's fall.
Total reserves fell to $29.5 billion, their lowest level since 2006.
The government meanwhile tightened controls on purchases from abroad via the Internet, already subject to a 50 percent tax if worth $25 or more.
Now, Argentines will be limited to just two online, overseas purchases a year, each of $25 or less.
The measures were the latest in a series aimed at halting capital flight.
According to the head of the country's Chamber of Electronic Commerce, Patricia Jebsen, Internet transactions accounted for 13.5 percent of foreign retail purchases by Argentinians last year, up from 7.5 percent the previous year.
A larger portion were done by credit cards, which get hit with a 35 percent tax.
The Argentine peso plunged 3.2 percent Wednesday as the country cracked down on online purchases from abroad in an attempt to stem capital flight and battle dwindling foreign reserves.
The sharpest one-day fall in the official exchange rate in years took the dollar over the 7 peso level, compared to just five pesos a year ago, and brought its loss since 2014 began to 8.4 percent.
On the black market, the peso sank to a new low of 12 pesos per dollar, as the supply of greenbacks tightened.
The country’s foreign reserves sank by $200 million as the central bank spent dollars trying to ease the peso’s fall.
Total reserves fell to $29.5 billion, their lowest level since 2006.
The government meanwhile tightened controls on purchases from abroad via the Internet, already subject to a 50 percent tax if worth $25 or more.
Now, Argentines will be limited to just two online, overseas purchases a year, each of $25 or less.
The measures were the latest in a series aimed at halting capital flight.
According to the head of the country’s Chamber of Electronic Commerce, Patricia Jebsen, Internet transactions accounted for 13.5 percent of foreign retail purchases by Argentinians last year, up from 7.5 percent the previous year.
A larger portion were done by credit cards, which get hit with a 35 percent tax.
