Argentina, Running Low on Dollars, Faces Fresh Economic Turmoil

Argentina, Running Low on Dollars, Faces Fresh Economic Turmoil
After more than four decades selling tires for cars, trucks and buses across Argentina, Edgardo Guerrini’s company now sits idle because authorities are refusing to grant import permits for his products.
Like thousands of companies, Guerrini Neumáticos is unable to import goods because the country’s central bank is running out of dollars to conduct basic foreign exchange transactions.
“It’s a crazy situation that leads to shortages, because domestic tire producers don’t have the capacity to cover demand,” said Mr. Guerrini, who compared the process of getting import licenses to “drawing water from a stone.”
Behind the dollar shortage is a growing crisis of confidence that now threatens to wipe out Argentina’s dwindling foreign reserves, testing the ability of a nationalist government to avoid another full-blown economic and financial crisis in Latin America’s third biggest economy. It is also a major political issue for President Alberto Fernández and the ruling Peronist movement.
“Argentina faces very dramatic challenges. The country is in deep recession, social conditions are worsening, [and] economic imbalances are growing,” Kristalina Georgieva, managing director of the International Monetary Fund, said Wednesday.

XL subscribe to our newsletter banner

Get the latest news and advice on COVID-19, direct from the experts in your inbox. Join hundreds of thousands who trust experts by subscribing to our newsletter.

Send your news and stories to us or and WhatsApp: +447747873668.

Before you go...

Democratic norms are being stress-tested all over the world, and the past few years have thrown up all kinds of questions we didn't know needed clarifying – how long is too long for a parliamentary prorogation? How far should politicians be allowed to intervene in court cases? To monitor these issues as closely as we have in the past we need your support, so please consider donating to The Climax News Room.