Argentina imposes currency controls to support economy

Argentina has imposed currency controls in a bid to stabilise markets as the country faces a deepening financial crisis.

The government will restrict foreign currency purchases following a sharp drop in the peso.

Firms will have to seek central bank permission to sell pesos to buy foreign currency and to make transfers abroad.

Argentina is also seeking to defer debt payments to the International Monetary Fund (IMF) to deal with the crisis.

In an official bulletin issued on Sunday, the government said that it was necessary to adopt "a series of extraordinary measures to ensure the normal functioning of the economy, to sustain the level of activity and employment and protect the consumers".

The central bank said the measures were necessary to "maintain currency stability".

Argentina has been struggling with a financial crisis which was exacerbated by the president's defeat in recent a primary poll.

The peso fell to a record low last month after the vote showed that the business- friendly government of President Mauricio Macri is liRead More – Source