Foreign Exchange Controls: the effectiveness of foreign exchange regulations is extended

On December 28, 2019, the Argentine Executive Branch, through Decree No. 91/2019, amended Article 1 of Decree No. 609/2019, which established that, until December 31, 2019, the exchange value (‘contravalor’) of export of goods and services must be transferred to Argentina and sold for Pesos in the foreign exchange market. By means of this amendment, said obligation to transfer and sale was extended over time, with no expiration date set for these kind of restrictions.

In the recitals of the Decree, it is stated that the continuity of said obligations is necessary because the economic-financial situation that motivated the issuance of Decree No. 609/2019 has not been overcome.

For its part, BCRA, through Communication “A” 6854 of December 27, 2019, extended, as from December 31, 2019, with no expiration date, the effectiveness of foreign exchange regulations which does not correspond to the obligation to transfer to Argentina and sell in the foreign exchange market the collection of exports of goods and services.