Argentina’s central bank on early Monday sharply cut the dollar purchase limit for individuals after the opposition leader Alberto Fernandez won the presidential election.

The central bank announced that it will limit the dollar purchases by individuals to $200 per month versus $10,000 earlier.

Over the last few days, a significant increase in demand for dollars, mainly by individuals, was observed, Banco Central De La Republica Argentina, or BCRA, President Guido Sandleris said.

The central bank saw the risk of this trend continuing this week and hence decided to tighten the controls, Sandleris added.

With the latest move, the BCRA aims to preserve the foreign reserves during the government transition period.

The reduction exclusively applies to the purchase of dollars for treasury and financial speculation and will not affect access to dollars for foreign trade or debt payments, the bank said.

The material has been provided by InstaForex Company –