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Capital flight four times greater compared to previous year

by on December 2, 2011

A report released today by the Argentine government found that capital flight during the third quarter was four times the amount compared to the previous year. There were $18.245 billion dollars in capital flight from January to September this year compared to 2010’s $9.169 billion. While some attribute this to the market’s uneasyness with the Presidential election, capital flight did not let up after.

This is spelling even more bad news for the government. Despite their currency controls money is still hemorrhaging out in dollars, which is 96% of the currency leaving the country. Presumably, this is going to banks in the United States or transferred first there for major corporations. The fact that only 3% were in euros says that either Europeans are trying to play the market in dollars right now, or that it is almost all an American-led process (perhaps both).

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From → Economic Policy

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