In June, the Argentine government began requiring banks to hold for one year 30% of capital inflows exceeding $2m a month. The banks must also inform the tax authorities about all inflows exceeding $50,000.
Esteban Fernández Medrano, a partner at Buenos Aires-based economic consultants Macrovision, said: “The Argentine government wants to maintain the peso at about 2.9 pesos per US dollar. It has been buying US dollars to achieve this but this has increased the peso monetary base and pushed up inflation.
