It responds to a state measure that limits the circulation of money between individuals to avoid a massive flight of capital. The term was born during the economic crisis in Argentina in 2001
The attack of the Russian army of Vladimir Putin on Ukraine has provoked a series of political actions and economic sanctions against Russia what could lead to an economic corralito by the Central Bank of Russia (BCR). In fact, to date the Russians do not know how long they will be able to continue using their credit cards freely or have unlimited cash at the country’s ATMs.
The term “financial corralito” emerged in 2001 due to the economic measures of the government of Argentinathen chaired by Fernando de la Rawhich applied strong banking restrictions to prevent the flight of mass deposits from bank branches due to the political and social instability of the country South American.
A situation that lasted for a year limiting access to money in cash from current accounts and time deposits of individuals and companies in both banks and savings banks.
In the months of the corralito, the Argentines could not carry out large operations in pesos or in other types of foreign currencies. Cash withdrawal was limited to 250 pesos or US dollars per week for holders or authorized of the same account.
Transfers abroad through credit or debit cards were also limited Except for business transactions. The movements and agreements must always be authorized by the Bank of Argentina.
The economic situation collapsed the country, and according to several reports, more than 50% of the population entered the poverty line due to the massive rise in taxes.
Cyprus 2013
A situation that was also experienced in Cyprus in the year 2013. On this occasion, the corralito was between March 16 and 25, 2013 before the imposition of the Eurozone to incorporate a levy on bank deposits.
During this period, the banks remained closed, but not the ATMs, and the line of cash between the population ended. To avoid bankruptcy in the country, the European Union provided aid of 10,000 million euros.
GREECE 2015
A week before the referendum in Greece against the adjustments imposed by the troikawhich kept the Eurozone in suspense, Greek banks were closed for three weeks.
The Greek Finance Minister, Euclid Tsakalotossigned a decree that activated the banking restrictions that began on June 29, 2015. In the middle of the Greek summer, with high temperatures in the streets, there were long queues in front of ATMs. The playpen only allow the extraction of 60 euros per day or 420 euros a week.
Then over 18,000 companies transferred their corporate accounts to Bulgaria or Cyprus, capital controls mainly damaged restaurants and cafes, workers without social security, textile companies and many SMEs.
Venezuela 2016
Christmas 2016 will always be remembered in Venezuela as one of its high points in its ongoing economic crisis in recent decades. The lack of cash on the streets left the country bankrupt.
The Superintendence of the Institutions of the Banking Sector (Sudeban) He sent a regulation to the banks so that they would not deliver more than 10,000 bolivars per person at their headquarters while the prices of basic goods and medicines multiplied their prices daily.
Today the 67% of Venezuelans do not have enough dollars to face the new economic realitywho has turned his country into one of the most expensive on the continent and its people in poor, around 90%.
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