The Argentine government has imposed stricter measures to prevent access to international currency reserves. As a result of these measures, the price of Bitcoin on one of the local exchanges reached $ 11,600, 25% higher than the average value of the cryptocurrency.
Banks have reduced the number of employees
Policy change, economic uncertainty and tighter currency controls have led Argentine banks to eliminate many jobs. According to the Buenos Aires Times
“Banks started by reducing the number of employees due to concerns about their budgets for the coming year. There is also the fear that the Fernández government may place limits on the number of dismissed persons. Among the biggest hits in the sector were delays in paying local notes and FX controls, which limits banks’ ability to trade futures contracts. ”
The economic situation in Argentina is becoming increasingly precarious. According to World Bank data, the local currency has devalued significantly in 2019. Annual inflation has reached over 50%, while GDP contracted 2.5% in 2018, and another 2.5% in the first six months of the year. of the year 2019.
Some observers suggest that Argentina, one of the largest Latin American economies, could be heading for another economic crisis. And in order to avoid the crisis, the government imposes stricter protectionist controls.
The current president, Mauricio Macri, has imposed harsh measures to try to prevent the financial crisis, such as restrictions on foreign currency spending. In December, Macri will be replaced by Alberto Fernandez, who is a supporter of these measures.
The economic situation in Argentina had a significant effect on the crypto market, affecting in particular the price of Bitcoin.
Bitcoin, more expensive in Argentina
Argentine traders have to pay much more for a bitcoin on local exchanges. For example, the Ripio platform, one of the main crypto exchanges in Argentina, assesses the NBTC at nearly 70,000 Argentine pesos, which is about $ 11,600.
A Reddit user even posted an image that reveals that Bitcoin reached $ 12,759, representing a premium of 38% compared to other global exchanges.