Categorized | International

Argentinean Housing Market in Turmoil After Dollar Restrictions

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The Argentinean government’s decision to place restrictions on using the United States dollar to make purchases has placed the nation’s housing market in a serious bind. There are fears that the residential real estate market and the construction industry may face serious declines in the coming months.

The real estate and construction industries have been a major driving force behind Argentina’s economic growth over the past few years. In both industries, the dollar has been used as one of the primary forms of payment. However, restrictions imposed by President Cristina Fernandez have made it very difficult for Argentinean citizens to obtain United States currency.

While her actions have significantly slowed down overall economic growth in Argentina, she believes that the restrictions are necessary in order to pay off the public debt. Real estate experts and economists, however, believe that the restrictions that are now in place are doing terrible damage to both the housing industry, and those that are indirectly related to it.

Construction has slowed quite a bit since the restrictions were put into place. As a result, the home improvement industry has experienced a serious decline. The United States has been an important part of the Argentinean economy for the last decade.

Ten years ago, the country faced a serious economic crisis. Nearly two decades ago, the nation also struggled with severe hyperinflation. Both of those events have led the general public to believe that the United States currency is safer than Argentina’s peso when it comes to long-term saving.

With respect to the housing market, economists fear that the market could experience a freefall if the restrictions on the dollar aren’t lifted in the near future.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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