PayPal to stop conversions of Argentine pesos to USD

Services such as PayPal provide an invaluable service on the internet, bridging the gap between different currencies with some success. Different nations have different ways of handling things, and back in 2011 Argentina took the odd step of restricting purchases of United States dollars.

As a result, PayPal has been cut back to international payments within the country. Argentinean PayPal users discovered they could bypass this restriction by dumping money into their account, then opening a second account and transferring the cash. As part of the transfer process they could then convert the pesos into dollars, ignoring the limitations.

The government's decision came about as an attempt to cut dependencies on the American dollar. This also helped Argentinean users to get a better deal, more in line with the official exchange rate. The inflation rate in Argentina is well documented, hence the numbers of people trying to put their savings into a more stable currency.

In September the Argentinean government nitroduced a 15% tax on foreign purchases. PayPal, Amazon, and eBay were all impacted by this. Complaints were made and PayPal did what they could, but this is the best solution they can come to.

The restriction will come into force on October 9, so there are still a couple of weeks to dump cash into another currency.

Source: BBC

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10 Comments

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it has mixed reasons.....and its not about being a 3rd world country in some way latin america is trying to not be consumed by neoliberalism, sometimes they take really bad decisions and sometimes they take a good step, so each country takes some counter measures for that, but believe me...being in the US wont grant you freedom....at all, most of the united statians (not all of them) live as a product and thats a faked freedom. so in resume argentina its trying to stop the dependecy on the dollar, cuz the need to promote their own currency and products in other to boost their country and not being like mexico where it depends entirely on the US. Thats really bad and wrong

Looks as if Argentina are really desperate to save cash now they can't get their greedy hands on the Falkland oil reserves.

I'm argentinean and I couldn't care the sh*t less about the falklands, so don't put all of us in the same box. I care about the freedom to operate in the money I choose though, and that's what our crappy government is trying to do, control our freedom of choice.

AshUK said,
Looks as if Argentina are really desperate to save cash now they can't get their greedy hands on the Falkland oil reserves.

I dont know why people havent realised paypal sucks, there's so many better payment methods around today, what are they going to do bad them all (I'm thinking of bitcoin/litecoin etc).

Dcrad said,
I dont know why people havent realised paypal sucks, there's so many better payment methods around today, what are they going to do bad them all (I'm thinking of bitcoin/litecoin etc).

Bitcoin really isn't a good payment system though, not from what I've seen anyway like the large-scale hack on it.

Dcrad said,
I dont know why people havent realised paypal sucks, there's so many better payment methods around today, what are they going to do bad them all (I'm thinking of bitcoin/litecoin etc).

I wouldn't trade real money for bitcoins though.

n_K said,

Bitcoin really isn't a good payment system though, not from what I've seen anyway like the large-scale hack on it.

Its an excellent payment system, its the exchange sites that leave themselves vulnerable to hacks that have a problem - bitcoin hasnt been hacked.

Ricardo Dawkins said,
"Nitroduced"... those argentinians.. hehehe
I think Argentina uses MercadoLibre anyway.

MercadoLibre is just for local businesses/individuals, there are no international sellers like there are on ebay.