CHART OF THE DAY: The Argentine Peso Completely Collapses

The Argentine peso fell 13% against the dollar today after the country announced that it would limit Argentines to two internet purchases from abroad per year.

Cabinet Chief Jorge Capitanich said that the new measure was meant to protect local industry.

More likely, it is a measure to control the flow of capital out of the country. Argentina’s foreign reserves are incredibly low. After paying $US900 million in debt the last week of December, government officials put foreign reserves at about $US30 billion.

And there’s more debt where that came from. This week alone the country offered to hand $US10 billion over to The Paris Club for debt dating back to its 2001 collapse.

Check out today’s dollar-peso action in the chart below:

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