Argentine Central Bank Announces Foreign Exchange Market Will Operate Again; Ministry of Economy Makes Announcements on Economic Matters

Through Decrees 19 and 20/2023, published today in the Official Gazette, the positions of president, vice president, and directors of the Argentine Central Bank (BCRA) were appointed in recess.

With the issuance of Communication “A” 7916 today, the provisions of Communication “A” 7915—which had established that any transaction involving the demand for foreign currency in the Foreign Exchange Market required BCRA’s prior approval—were annulled, effective as from tomorrow. In other words, the Foreign Exchange Market will operate again without such limit.

On the other hand, the Minister of Economy, Luis Caputo, informed his economic plan this afternoon. The plan includes, among others:

• A new parity of the ‘official’ exchange rate at $800 per dollar. Also, a temporary increase in the Tax for an Inclusive and Supportive Argentina (PAIS tax) and in the export duties on non-agricultural items would be included for the duration of the emergency. [It was informed that, once the emergency is over, export duties on all sectors will be eliminated];
• A new statistical system that does not require prior manual approval for the authorization of imports, replacing the Argentine System of Imports (SIRA).

The market is expected to adhere to these new guidelines tomorrow.