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In the early 2010s, the government of Argentina put in place a new policy (sometimes called the dollar clamp) to prevent the people of Argentina

In the early 2010s, the government of Argentina put in place a new policy (sometimes called the "dollar clamp") to prevent the people of Argentina from exchanging pesos, the local currency, for U.S. dollars. As a result of the policy, the peso was artificially overvalued in the official market.

Briefly discuss two reasons why a government might attempt to prevent its currency from depreciating.

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