Thursday, February 09, 2012


...In Argentina, the "irregularity" of cash use in the economy must be addressed. Never a good sign.

The government will restrict daily cash transactions to 1.000 Pesos
(231 US dollars) per person, down from 10.000 Pesos, according to a
statement in the Official Gazette. The measure affects activity in the
stock and bond markets, investment funds and in the futures markets.
Operations above the limit will have to be done through Argentine bank
accounts that are authorized by the central bank.

“They are forcing a higher level of formality in the economy, as cash
transactions allow more irregularities,” said Felipe Hernandez, an
analyst at RBS Securities Inc. in Stamford, Connecticut. “This is in
line with other measures to prevent money laundering, for which the
government has been under a great deal of pressure.”

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