By Online.wsj.comBUENOS AIRES (Dow Jones)--Argentina's top central banker said Monday that the outflow of U.S. dollar deposits from the banking system observed in recent weeks should end within days.
About $1.76 billion in dollar deposits left the banking system in the two weeks after the government imposed new foreign exchange controls on Oct. 31, according to central bank data.
Speaking with reporters at the sidelines of a conference, Central Bank of Argentina President Mercedes Marco del Pont attributed the drop in deposits to the public's misunderstanding of new foreign exchange controls.
Dollar deposit outflows have slowed and "we estimate that in the next few days it will converge with zero," she said.
The foreign exchange controls have made it increasingly difficult for individuals and businesses to obtain dollars. The government says the measures are aimed at money laundering and tax evasion, while critics say the true intent is to stanch capital flight that is denting international reserves.
Marco del Pont said additional controls won't be necessary.
The central bank has sold $150 million in dollars on the local exchange market to support the peso since Oct. 21, said Marco del Pont, who expects those dollar sales to drop to close to zero by the end of the month.
The central bank and other government organizations frequently intervene in the local exchange market to gradually weaken the peso versus the dollar to help exporters.
But inflation that is widely believed to be running above... Read Full Article
