Corralito (of splinter corral stable) is the colloquial name for an Argentine system for the restriction of the circulation of money, which was introduced 2001 to the Argentina crisis by the government Fernando de la

In December 2001 the signs for a substantial flight of capital from the Argentine bank system mehrten themselves after several pessimistic voices over the economic situation of the country. As last minister of economics Domingo Cavallo introduced a restriction of cash: Only 250 pesos cash per week one was allowed from current accounts to take off. The system should energize the Argentinier for paying by transfer and prevent above all substantial dollar purchases. It could not prevent however the devaluation at the beginning of of 2002 and led to various panic reactions.

The Corralito remained existing in its original form to beginning 2002, then it was converted under the new administration Eduardo Duhaldes into the so-called . The restriction of taking from cash off was gradually loosened in this new law, however all accounts were frozen above a border by 10,000 pesos and returned depending upon height of the account to a later period between March 2002 and at the end of 2010. The had serious effects on the sales of long-lived and hochpreisigen consumer goods such as cars as well as on the Argentine property market.

2003 were gradually again removed also the This made possible by the so-called (2002-2003), which transformation of all accounts in dollar into Argentine peso, by which the bank system of Argentina was relieved.

Articles in category "Corralito"

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