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"The Impact of Globalization on Argentina and the Southern Cone"




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The “Corralito”: Economy Minister Domingo Cavallo introduced restrictions to the withdrawal of cash from bank deposits (corralito), intending to stop the draining of deposits that had been taking place throughout 2001 and had reached the point were 25% of all the money in the banks had been withdrawn. These measures were aimed at controlling the banking crisis for a period of 90 days, until the exchange of Argentina's public debt could be completed.


Although people could still use their money via credit cards, checks and other forms of non-cash payments, the enforcement of these measures caused delays and problems for the general population and especially for businesses. Massive queues at every bank and growing reports of political crisis contributed to inflame Argentina's political scenario.

In this context, certain factions of the opposition, as well as interest groups who wanted a devaluation of the Argentine peso, seized the opportunity to fuel public anger and replace the government.




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"The Impact of Globalization on Argentina and the Southern Cone"

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