Corralito

Corralito ( German: playpen, from the Spanish corral, stable ') is the colloquial name for an Argentine system for restriction of currency in circulation, which was introduced in the Argentine crisis of 2001 by the government of Fernando de la Rúa.

In December 2001, there were increasing after several pessimism about the economic situation of the country the signs of a massive capital flight from the Argentine banking system. As a last resort led economy minister, Domingo Cavallo, a cash restriction a: Only 250 pesos cash per week could lift the account holder per account. The system should encourage the Argentines towards cashless payment and stop especially massive dollar purchases. However, it could not prevent the devaluation in early 2002 and led to various panic reactions.

The Corralito remained in its original form exist until the beginning of 2002, it was under the new government of Eduardo Duhalde in the so-called Corralón: converted ( German large stall ). The restriction of the lifting of cash was gradually relaxed in this new law, however, for all accounts were frozen above a limit of 10,000 pesos and should be returned depending on the amount of the account at a later period, between March 2002 and end- 2010. The Corralón had a serious impact on the sale of durable and high-priced consumer goods such as cars and on the Argentine real estate market.

In 2003 also the Corralón was gradually dissolved again. This was made possible by the so-called Pesificación (2002-2003), the conversion of all dollar-denominated accounts in Argentine peso through which the banking system of Argentina was relieved.

  • Economy (Argentina )
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