Argentina's inflation strategy draws scorn

Bid to attract US dollar deposits criticised as potential incentive for money laundering and organised crime.

    The government of Argentina's President Cristina Kirchner has unveiled a plan to tackle double-digit inflation that is stifling its economy.

    The cash-strapped administration is adamant that it will not devalue the peso to stop the bleeding.

    So to tackle the problem of inflation, it wants citizens to deposit billions of undeclared US dollars into the central bank - with no questions asked. But critics say it will encourage money laundering and organised crime.

    Al Jazeera's Lucia Newman reports from Buenos Aires.

     

    SOURCE: Al Jazeera


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Daughters of al-Shabab

    Daughters of al-Shabab

    What draws Kenyan women to join al-Shabab and what challenges are they facing when they return to their communities?