Argentine Central Bank sets $50 foreign gambling payment cap

The Central Bank of Argentina has set new limits for many types of credit card transactions abroad, including a USD$50 (£38.72/€44.81) limit on gambling and betting services. The changes, announced on 31 October, came into effect on 1 November. In addition, the transfer of funds to payment services such as PayPal, the transfer of funds to investment accounts located outside of Argentina and the purchase of foreign exchange currencies and cryptocurrencies are all also capped at $50. The move is intended to slow outflows of the central bank’s foreign exchange reserves and prevent further devaluation of the Argentinian Peso, over fears that the country’s general election results may cause the reserves to be depleted. On October 27, Peronist Alberto Fernandez defeated incumbent Mauricio Macri for the nation’s presidency. After primary results projected Fernandez to win the presidency, the Peso nosedived amid fears that Fernandez would put an end to Macri’s more market-friendly policies. Having bought USD$0.027 at the start of 2019, one Argentine Peso is now valued at $0.017. This devaluation strongly affected businesses for which Argentina was a key market, including Codere, which saw Argentina fall from its largest market to third-largest. It also may have contributed to Codere being downgraded to a ‘B-’ grade from credit rating agency Standard & Poor’s.