Soon after the announcement made by the country’s central bank to take action to tighten controls on the movement of foreign currency, the Argentina peso plunged by more than 10%. Officially the peso pegged at 72 per US dollar, but it touches the bottom of 145 for a greenback on the black market.
The latest increase to Bitcoin and Cryptocurrencies in a country leads to a drop in the price of the country currency, which is the biggest currency challenge facing for more than a century.
BCRA (the Board of the Central Bank of the Argentine Republic) has justified the new actions in a statement that is released on its Spanish language website saying that they are an effort “to promote a more effective allotment of foreign currency.” In simple words, it says:
A mechanism is established by the Federal Administration of Public Revenues (AFIP), which is about the collection of taxes on income and on personal properties at a rate of 35% for external asset formation operations by individuals as well as on purchases in foreign currencies through debit and credit cards.