July 22, 2022 11:50 GMT
- Argentina limited access to the official foreign exchange market for companies trading shares of US-based companies on the local market, according to an emailed central bank statement following a meeting of the board of directors. (Bloomberg)
- The central bank said companies may hold up to $100,000 in the securities, known locally as Cedears.
- Companies may not trade the instruments for 90 days before or after accessing the official foreign exchange market.
- Analysts have noted that the government’s resistance to a broad currency realignment is driven by the massive effect a depreciation of the peso would have on public debt dynamics -- of which nearly 70% is denominated or linked to foreign currencies.