# Argentina's 'little trees' blossom as forex controls fuel black market

> Argentina's black market for dollars has grown since the government introduced forex controls in September to halt a fall in dollar reserves and stabilise the peso. Inflation is above 50% and the peso has lost close to 70% of its value against the dollar over two years.

- Date: 2020-02-05 · published 2020-02-05T12:00:00.000Z
- Category: macro · region Argentina · magnitude low
- Page: https://feedsoft.ai/events/54857-argentina-s-little-trees-blossom-as-forex-controls-fuel-black-market
- Commodities: [Argentine Peso (ARS per USD)](https://feedsoft.ai/c/USDARS.md)

## Why it matters

Capital controls keep the peso artificially stable while inflation erodes it, which adds currency risk for Argentine feed and grain buyers and can distort local import costs.

## Read by commodity

- USDARS: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/article/business/argentinas-little-trees-blossom-as-forex-controls-fuel-black-market-idUSKBN1ZZ29V/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.