3. Argentina will shut down its financial system
Argentina will shut down its financial system
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Shut down
Declare
Suspension
Shortage
Strap
Battered
Force
Due to
Argentina will shut down its financial system
The Central Bank declared a banking and foreign exchange suspension beginning Monday as result of a shortage of cash.
A wholesale collapse of Argentina's financial system would be catastrophic for Latin America's cash-strapped No. 3 economy, battered by daily protests by depositors angry about a savings freeze and by jobless workers.
The Central Bank earlier forced Canadian-owned Scotiabank to stop most operations due to cash problems. The 30-day closure of Scotiabank Quilmes, a unit of Bank of Nova Scotia, is a high-risk strategy by the national leaders. "If other foreign banks think it will be impossible to operate in Argentina, no one will want to stay," one bank analyst said.
Hundreds of people lined up outside Scotiabank's main Buenos Aires branch to withdraw their salaries. Within a few hours, other banks closed branches across the city and put guards at the doors.
"I have 12 pesos ($4) to last me until the end of the month," said 28-year-old telecoms worker Maximiliano Lopez, as he waited outside Scotiabank's downtown headquarters. "I probably won't eat much today."
The protests in the provinces "are the most critical point" for the government now.
Social revolt last December triggered riots and left 27 dead.
Argentina has asked for at least $9 billion in aid to avoid defaulting on International Monetary Fund and World Bank loans.
Questions
What do the following phrases mean?
- "Due to cash problems" means:
- "Downtown headquarters" means:
- "Hundreds of people lined up outside Scotiabank's main Buenos Aires branch" means:
- "Social revolt last December triggered riots" means:
- "Withdraw their salaries" means:
Are the following sentences correct?
1. Argentina will get a $ 9 billion loan.
2. The worst protests are in cities.
3. Depositors are angry about high unemployment.
4. A lot of people have no money at all.
5. There is not enough cash in Argentina.
Answer Key