Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

Rewrite · Extraordinary measures

Forced conversion of foreign-currency deposits and contracts (pesification)

What it is
Compulsory redenomination of foreign-currency deposits and debts into local currency at an official rate below the market rate, often with a ban on indexation.
Why it counts
Dollar savers are paid in depreciating local currency at a below-market rate, transferring wealth from depositors to banks, debtors and the state.

When it was in force

  • Argentina: 2002, historical

Example

  1. Argentina

    2002Historical

    Converted all dollar deposits in the financial system to pesos at 1.40 pesos per dollar, while dollar debts to the financial system were converted at 1:1.

    Decreto 214/2002 (Reordenamiento del sistema financiero), art. 2Primary source
    “Todos los depósitos en DOLARES ESTADOUNIDENSES u otras monedas extranjeras existentes en el sistema financiero, serán convertidos a PESOS a razón de PESOS UNO CON CUARENTA CENTAVOS ($ 1,40)”

    argentina.gob.ar (opens in a new tab)Checked: quote matched on the page by script

    Argentina today: index 40.1

Examples and their dates reviewed .