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Corralito was the informal name for the economic measures taken in Argentina during 2001 by economy minister Domingo Cavallo in order to stop the draining of bank accounts. 2001 is a common year starting on Monday of the Gregorian calendar. ...
Domingo Cavallo was the finance minister of Argentina during the administration of President Carlos Menem, and also in President Fernando de la Rúas. ...
For other uses, see Bank (disambiguation). ...
The Spanish word corralito is the diminutive form of corral, which means "corral, animal pen, enclosure"; the diminutive is used in the sense of "small enclosure" and also "a child's playpen". This expressive name alludes to the restrictions imposed by the measure. A diminutive ia a formation of a word used to convey a slight degree of the root meaning, smallness of the object named, intimacy, or endearment. ...
In 2001, Argentina was in the midst of a crisis: heavily indebted, with an economy in complete stagnation (an almost two-year-long recession), and the exchange rate was fixed at one US dollar per peso by law (which made exports uncompetitive). Many Argentines, fearing an economic crash and possibly a devaluation, were transforming pesos to dollars and withdrawing them the banks in large amounts, usually transferring them to foreign accounts. In order to stop this draining from destroying the financial market, the government froze all bank accounts, initially for 90 days. Only a small amount of cash was allowed for withdrawal on a monthly basis, and only in pesos. Operations using credit cards, cheques and other means of payment could be conducted normally, but the lack of cash availability caused numerous problems for the general public and for businesses. The Argentine economic crisis was a situation that affected Argentinas society widely during the late 1990s and early 2000s. ...
A recession is usually defined in macroeconomics as a fall of a countrys Gross National Product in three successive quarters. ...
Devaluation is reduction in the value of a currency. ...
Credit cards A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. ...
Typical cancelled personal cheque as used in the U.S. A cheque (British English) or check (American English), thought to have developed from Persian چك chek, is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specific demand account held in...
The corralito was ultimately ineffective, since many people ended up appealing in the courts for their right to have their cash, and being granted that right. Moreover, the cash restrictions exacerbated the recession. President Fernando de la Rúa was forced to resign on 21 December 2001, after violent riots, but the restrictions of the corralito could not be lifted at the time. Fernando de la Rúa Bruno (born September 15, 1937) is an Argentine politician. ...
The December 20 & 21 Riots occurred in 2001 in Buenos Aires, Argentina. ...
Argentina's situation worsened for several months, and then gradually began a recovery. The corralito was softened and then officially abolished during the interim rule of President Eduardo Duhalde. Eduardo Alberto Duhalde Maldonado (born October 5, 1941) is a former president of Argentina. ...
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