Money is flying out of Argentina's banks despite the corralito-the freezing of deposits, whose imposition late last year helped trigger bloody protests which eventually brought down the government. This is partly because, to appease the angry crowds, the new government of President Eduardo Duhalde loosened the freeze last month. But mainly it is because Mr Duhalde has picked a fight with the judiciary over the measures. The courts, apparently out of revenge, have supported tens of thousands of depositors, overruling the corralito and instructing the banks to repay depositors immediately, in full. With the banks reportedly losing up to $300m a week from these judgments, the central bank has been printing money to provide them with liquidity, while also burning up its dollar reserves in a vain attempt to stop the peso from plunging.
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