Argentines Withdraw $1 Billion From Bank Accounts Amid Turmoil

Argentines have withdrawn a little more than $1 billion in dollar deposits from the country’s banking system over the past seven weeks, as the government struggles to convince them that their currency will stabilize.

Savers started pulling out their dollars from bank accounts at a fast pace when former Economy Minister Martin Guzman resigned on July 2, plunging the government deeper into crisis. Argentina’s third economy minister since then, Sergio Massa, enjoyed a brief market rally upon arrival before deposits declined again.

While some dollar deposits make up a portion of Argentina’s foreign reserves, which are also in ...