The Central Bank of the Argentine Republic (BCRA) decided on Thursday (31) to broaden the scope of foreign exchange restrictions to stop the burning of international currencies. The monetary authority has restricted some of the credit card transactions involving the use of foreign currency.
"Financial institutions and other local card issuers must have prior authorization from the Central Bank to access the foreign exchange market in order to make payments abroad through credit, debit or prepaid cards issued in the country from 11/01/19 inclusive, when payments originate directly or indirectly through international payment networks," said the statement issued by the Central Bank.
Restricted operations are "participation in gambling and betting of different types, the transfer of funds to accounts with payment service providers, the transfer of funds to foreign-based investment manager accounts, foreign exchange transactions and the acquisition of crypto-actives in different modalities," details the statement.
Beginning in November, Argentine tourists will have a cash-out limit of US$ 50 abroad. This ceiling did not exist previously. The BCRA also announced a ban on the use of cards for purchases at gaming establishments and for buying cryptocurrency assets such as Bitcoin.
Thus, the Argentine central bank vetoes what it calls the “dollar casino mechanics" by which a person can buy chips with a card and then exchange them for dollar bill paying the official price. The BCRA will prohibit the mechanics of the “dollar casino” by which it was possible to make unlimited currency by buying and selling chips, which are charged in dollars.
The system was very simple. In a casino abroad, chips were bought with a credit cards and, without using them, they were sold in cash to receive the currencies. Thus, that tourist obtained foreign currency at the official exchange rate and without limits. The monetary authority also decided to veto transactions with operators of international payment services, such as PayPal.
Last Sunday (27), the BCRA had already restricted Argentine access to the dollar in the country's banking system. Since Monday (28), citizens can only buy US$ 200 a month if they have a bank account. It is noteworthy that recently, the Argentine Central Bank has established a local exchange control, reducing the monthly limit on foreign currency purchases from US$ 10,000 to only US$ 200.
Source: GMB
