Argentina's government has suspended for six months all lawsuits against banking restrictions and the new foreign exchange rules that aim to protect the banking system from collapse.

The decree also orders banks to stop selling dollars and to convert all their dollars into pesos at the Central Bank, at the rate of 1.4 pesos to the dollar - which is below the market rate of almost two pesos to the dollar.

The government's decision comes three days after the Supreme Court declared the government's freezing of bank deposits unconstitutional. Some financial analysts condemned the decision, saying lifting the restrictions could lead to a run on deposits and the collapse of Argentina's banking sector.

Members of Congress also plan to try the Supreme Court's nine members for their controversial decision to release former President Carlos Menem from house detention. Some analysts claim the Court's ruling against the government's restrictions may have been a response to the plan by Congress.

Some information for this report provided by Bloomberg.

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