Argentine Central Bank Amends Regulations to Access Foreign Exchange Market

On June 29, 2023, by means of Communication "A" 7798, the Argentine Central Bank (BCRA) established that companies with a majority state participation -in the capital or in the decision-making process- may access the Foreign Exchange Market (FX Market) for foreign portfolio investments specifica.ly to pay imports of fuel or energy, provided they comply with certain requirements:

1) The funds acquired must be deposited in foreign currency accounts owned by them in foreign financial institutions.

2) To access the FX market, the corresponding financial institution must have verified that the company complies with the exchange requirements in force to imports of goods with the funds.

3) The corresponding financial institution must have an affidavit from the company, signed by its legal representative, in which it undertakes to:

• Submit documents to prove the assignment of the funds to the specific purpose, and to register before the BCRA.
• Use the funds to pay imports of fuel or energy within five working days as of the date of access to the FX Market.
• Transfer and settle the remaining funds in foreign currency through the FX Market within eight business days as of the date of access.