Argentina Prepares to Restrict Imports Amid Foreign Exchange Shortage

Argentina's government will launch three measures in the coming days aimed at restricting imports and preserving the central bank's dwindling foreign currency reserves, a source told Reuters on Tuesday. The measures come as new data on Monday showed a trade deficit in July of $437 million, the second deficit in a row for Latin America's third-largest economy. "Smoother coordination is required between (Argentina's tax collection entity) AFIP, Customs and Commerce, with measures aimed at ordering imports, taking care of the Argentine central bank's dollars and avoiding abuses," said the source, who asked not to be identified. Argentina's exports in the first seven months of the year increased by 22.4% compared to the same period in 2021, while imports jumped 44.6%. One of the measures seeks to accelerate exports by reducing the time frame for those who import goods without paying taxes. The measure will reduce the time to export the goods to 120 days from 360. Read more.