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Argentina to impose online purchase restrictions

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(Credit: Reuters) The image is a woman on her computer.Online Payment
January 24
6:58 AM 2014

The Argentine government is implementing restrictions on purchases made over the Internet. The new policy is designed to reduce capital flight in the country, wrote The Times of India.

Under the new policy, Argentines who want to conduct online purchases must now secure approval from the government, the report said.

The measure, which was published in Argentina's official gazette, is aimed to decrease the amount of dollars leaving the country. The same rule also applies to products that enter the country through postal services, the report explained.

Argentina's economy is presently ailing because of the dollar shortage. In addition, the country's foreign reserves recently dropped to its lowest level in over seven years. The Argentine government cannot secure foreign loans at market rates after the nation's economy collapsed in 2001 and 2002. The country now makes use of its currency reserves to pay off foreign debts, the report detailed.

Authorities have been implementing currency restrictions designed to curb capital flight since 2011. This policy makes legal peso-dollar trading in the country difficult, The Times of India reported.

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