Bitcoin (BTC) price reaches $11K on one of the Argentinean crypto exchanges since the country’s government is imposing strict measures to prevent access to foreign exchange reserves. Bitcoin’s price, as a result, reached a 25 percent premium as we are reading in the Bitcoin news now.
The high economic uncertainty and shifting politics have led the Argentine banks to eliminate the trading desk jobs and according to the Buenos Aires Times:
‘’Banks started by cutting senior roles amid concerns on their budgets for the year ahead and that a Fernández government may put limits on layoffs. Among the biggest blows to the sector were delays on the payment of local notes and FX controls, which limit banks’ ability to trade futures.’’
The economic turmoil is having a major effect on the crypto market mostly, the bitcoin price. Consequently, the traders in Argentina are paying more than 25 percent for the main cryptocurrency and Ripo, as one of the main local crypto exchanges is shows that the Bitcoin (BTC) price reaches $11,600. The economic situation in the country is getting dramatic and according to the data from the World Bank, the local currency decreased significantly in 2019. The annual inflation rate reached more than 50 percent while the GDP contracted 2.5 percent in 2018 and another 2.5 percent in the first six months of this year.
Some of the observers suggest that Argentina as one of the largest Latin American economies are likely heading towards another economic crisis and to avoid the crisis the administration of President Macri is imposing stricter protectionist controls. And the Wall Street Journal explained:
‘’To make up the difference, Argentina often prints money that fuels inflation or borrows dollars from abroad or both. Because it is a protectionist economy closed to free trade and riddled with inefficient companies, it struggles to generate enough dollars through exports to pay its dollar debts.’’
Before leaving the presidency, Macri is taking the last-minute measures to avoid the looming financial crisis and one of them is hardening the foreign currency restrictions so the latest control imposed by the Central Bank of Argentina forbids the country to purchase more than $200 a month.
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