Argentina’s currency restrictions are affecting Paraguay
RIO DE JANEIRO, BRAZIL – The measure banning credit card use for foreign travel sparked criticism not only in Argentina, but also in Paraguay and in other countries of the region, mainly since Argentina’s decision could violate MERCOSUR terms.
The measure, announced on Thursday 25, was published on the Argentine Central Bank’s website.
“The decision, taken as the southern hemisphere summer vacation period nears, comes in addition to the restrictions on dollar purchases, at a time when Buenos Aires is seeking to renegotiate its US$44 billion debt with the International Monetary Fund to extend payment terms and avert a default before maturities of almost US$20 billion a year in 2022 and 2023,″ explained Argentina’s Minister of Development Matías Kulfas.
Economist and former BCP board member Carlos Carvallo said that in view of these measures, debates and discussions should begin within MERCOSUR. “Paraguay should take the initiative, just as Uruguay did to make the bloc more flexible, in order to be able to sign trade agreements outside the bloc,” he said.
He emphasized that Paraguay could also lead a discussion process on trade facilitation within MERCOSUR, and on the impact of the restrictive measures of Argentina’s economic policy on regional trade.
Key Facts
— Deep Dive
— For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America
More: Latin America news in English, every day from The Rio Times.
Read More from The Rio Times