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Argentina's central bank to remove monthly limit on US dollar purchases

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Argentina's central bank to remove monthly limit on US dollar purchases

Argentina'scentral bank, Banco Central de laRepública Argentina, plans to remove in the coming weeks a restrictionthat prevents an individual or business from acquiring more than $5 million worthof U.S. dollars in the local market per month, La Nación reported.

The moveis designed to facilitate trade, specifically imports, which could be restrictedby the current limit on U.S. dollar currency purchases, the report said.

FedericoSturzenegger, the head of the central bank, reportedly said that the measure ispart of a plan by theMacri government, which took office in December 2015, to end currency controls thatwere inherited from the previous government.

In May,the central bank had raisedthe monthly limit to $5 million from $2 million, but eliminating the ceiling altogethershould boost foreign investment and help to reduce bureaucracy for importers lookingto bring goods or equipment into Argentina, the bank noted.