On September 1, Argentine President Mauricio Markri signed a decree announcing a series of foreign exchange control measures to reduce financial market volatility. Argentine Central Bank (BCRA) requires exporters to repatriate overseas sales. In addition, all companies and banks must seek authorization to convert pesos into foreign currencies and require individuals to buy only 10,000 dollars in a month.
This policy has severely limited the avenues for people to hedge assets, making a large number of capital choices to convert pesos into mainstream digital currencies.
In the local Bitcoin market, the premium was once as high as $2,250,a level not seen anywhere else in the world. Before that, Argentinean had little knowledge of digital currency, and most of them had not heard of BTC or had no idea of its attributes.
It can be said that the release of foreign exchange control measures has become the best BTC preacher.
In last month’s column, AOFEX has reminded users that as asset risk aversion continues to heat up and peso continues to depreciate against US dollar, the price/performance ratio of the dollar-seeking hedging strategy will gradually decrease. At the same time, with the release of Argentina’s foreign exchange control policy, there will be more safe-haven assets to choose gold or other exports, such as digital currency.
AOFEX will make efforts in security, financial crime prevention and other aspects to bring more safe and convenient professional services for investors.
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