The Argentine government on Sept. 1 announced currency controls to limit foreign currency purchases and stem the peso's fall, BBC News reported, citing the government.
Companies will need the central bank's consent to sell pesos for foreign currency purchases or foreign transfers, according to the report. Individuals who wish to buy more than $10,000 in a month would also require the central bank's permission.
The directives, which remain effective until the end of 2019, have been touted as "extraordinary measures" aimed at currency stability.
The peso slumped about 21.8% against the U.S. dollarAug. 12 as opposition candidate Alberto Fernández took lead over Argentine President Mauricio Macri in the primary vote Aug. 11. This reportedly indicates that the current business-friendly government could be ousted in October.
More recently, Moody's, Fitch Ratings and DBRS already downgraded Argentina after the country unilaterally extended the maturity of its short-term debt. S&P Global Ratings upgraded the country's foreign and local currency sovereign credit ratings a day after downgrading them.
The peso slumped 2.80% Aug. 30.
