Updated 12:42 PM EDT, Wed, Sep 22, 2021

Argentina Travel: American Airlines Not Accepting Argentine Pesos For Payment Anymore

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On Tuesday, American Airlines Group Inc. announced that the airline company won't allow customers to pay for their tickets in Argentine pesos. The airline cited that the reason was due to repatriation issues.

According to a report with CNN, the American Airlines Group had already changed its policy once. Back in September, Argentines who paid with pesos could fly within 90 days of the ticket purchase. Now, the airline company has implemented a stricter policy, and willl not accept Argentine pesos at all. Customers still, however, have the option to pay with foreign credit cards.

American Airlines is currently facing two major issues in Argentina. 

The Argentina central bank had recently reduced the allowed amount of money foreign companies can bring back to the United States. This reduction was implemented to address concerns over the central bank's declining reserves in foreign currency. CNN noted that this alone was a red flag for the country's economic stability.

The country is also expected to have major changes in its currency.

Mauricio Macri's recent victory during Sunday's elections would spell a new era for Argentina's economy, which has remained stagnant for the past number of years. The former Mayor of Buenos Aires vowed to implement major changes in bringing Argentina to the world.

Macri said that one of these major reforms would be ending the government's currency controls that was led by outgoing president, Cristina Fernandez de Kirchner. Argentina currently has a mostly fixed exchange rate. Kirchner had previously put the controls in place in order to curb Argentina's rising inflation. The country's inflation has risen to over 20 percent in recent years. 

Many financial analysts believe that Macri is devaluing the peso, which will make it a great time to invest in Argentina. Financial experts hope that the move will further attract foreign investors to the country, which might add some vitality to the currency for a short term. 

Macri has also promised to implement changes to strengthen the country's economy, most likely further strengthening political ties with the United States of America. Macri also said that he was going to expel Venezuela from Mercosur. 

Removing the currency control will cause Argentina's peso to be significantly devalued, Wall Street Journal reports.

With a devaluation of the peso becoming imminent, American Airlines might hesitate accepting a currency that many financial experts say is overvalued.

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