Corralito

Economy of Argentina Argentine peso Convertibility plan Corralito Corralón Cacerolazo 2001 riots Apagón Economic emergency law Debt restructuring

[1] In 2001, Argentina was in the midst of an economic crisis: heavily indebted, with an economy in complete stagnation (an almost three-year-long recession), and the exchange rate fixed at one U. S. dollar per Argentine peso by law, which made exports uncompetitive and effectively deprived the state of having an independent monetary policy.

Many Argentines, but most especially companies, fearing an economic crash and possibly a devaluation, were transforming pesos to dollars and withdrawing them from the banks in large amounts, usually transferring them to foreign accounts (capital flight).

President Fernando de la Rúa resigned on 20 December 2001 after violent riots, but the restrictions of the corralito were not lifted at the time.

[6] Most banks stayed in the country during the crisis, withstanding a severe damage to their reputation as well as (in certain cases) physical attacks.