Argentina backtracks on details of dollar control

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Associated Press

Posted on January 26, 2014 at 10:32 AM

Updated Sunday, Jan 26 at 11:02 AM

BUENOS AIRES, Argentina (AP) — Argentina's economy minister is backtracking on details of the government's recent announcements over the easing of currency controls.

Argentina announced Friday it was relaxing restrictions on the purchase of U.S. dollars. The decision was forced by double-digit inflation and a sharp slide in the local peso's value.

But Economy Minister Axel Kicillof told local daily Pagina 12 in an interview published Sunday that the Argentine tax rate on credit card purchases made in dollars will not be lowered Monday to 20 percent from the current 35 percent, as he had announced.

The tax will still be lowered for cash purchases, however. And all the other announced measures are still to take effect Monday, most notably a provision allowing Argentines to again buy pesos for personal savings, reversing a 2012 restriction.

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