Banks Closed in Argentina
Sunday, April 28th, 2002Ask any number of Argentines — from lawyers to maids — how much money they have in their pockets, and the answer is the same: “Just a few pesos.” Since the government took the extraordinary step of closing the nation’s banks last weekend, people from all walks of life are experiencing similar hardships for perhaps the first time in Argentina’s history. “Even the privileged are feeling the pain now,” said Sylvia Baez, a charity worker. “No one is safe from suffering, not even the rich.” Until this week, Argentina’s four-year recession had hurt mostly those at the bottom rungs of society. … Last weekend, President Eduardo Duhalde’s government halted all banking operations and foreign-exchange transactions until further notice, which caused most automatic teller machines to run dry. Duhalde had hoped the move would help prop up the banking system, reeling from the outflow of about $100 million a day as depositors sought to withdraw their savings before the peso tumbled further. But the measure has inflicted pain on all levels of society. Workers cannot cash their paychecks. Consumers are limiting their spending to the bare necessities. Many now walk to work rather than pay the fare for a bus or a taxi. The fortunate are the ones who can still find a merchant who will sell them goods with credit and debit cards. (04/28/02)
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