BCRA: New Clarifications and Amendments to Regulations on Foreign Exchange Controls

The Argentine Central Bank (the “BCRA”, after its Spanish acronym) provided the following clarifications and/or amendments to Communique “A” 6770:

 

Exports of goods

 

• The terms for the transfer and sale for pesos of collections of exports of goods should be counted as of the date of shipment (cumplido de embarque) of the export destination granted by Argentine Customs; and

 

• The 15-day term also applies to the exemptions provided for by the first chart of the annex to Resolution No. 57/2016 of the Secretariat of Commerce.

 

 

Access to foreign exchange markets for non-Argentine residents

 

• The requirement for prior approval by BCRA for any amount above the equivalent of USD 1,000 on a monthly basis in the aggregate of institutions authorized to operate in foreign exchange only applies to purchases of foreign currency by non-Argentine residents.

 

Financial indebtedness with non-Argentine residents

 

• In the case of institutions authorized to trade in foreign currency, the obligation to transfer and sell for pesos the disbursements of new financings as of 09.01.19 in the foreign exchange market, as a requirement to service capital and interest payments, will be fulfilled with the inflow of the funds to the General Exchange Position.

 

 

Obligations of Argentine residents in foreign currency

 

• The restriction to access the foreign exchange market for the payment of obligations agreed to as of 01.09.19 does not include payments by clients of financings in foreign currency granted by local financial institutions, including payments for purchases made with credit cards in foreign currency.

 

 

 

Services with foreign counterparties

 

Alongside the exception granted for credit card 

• issuers for transfers made for tourism and trips, another exception is granted for local collection agents of funds corresponding to services rendered by non-Argentine residents to Argentine residents and institutions for expenses paid to foreign institutions for usual operations.

 

 

Foreign currency swap and arbitration

 

• Transfers of foreign currency by natural persons, from their local foreign-currency-denominated accounts to their own accounts abroad, are not restricted in any way.

 

 

• Likewise swaps and arbitrages which entail the inflow of currency which are not required to be sold for pesos may be made without restrictions.

 

Related parties

 

• The definition of related parties used by Communique “A” 6770 corresponds to the criterion used in the regulations regarding large exposures to credit risk.

 

 

Local financings in foreign currency

 

• Financings granted by local financial institutions in foreign currency to clients from the private non-financial sector must be sold for pesos in the foreign exchange market upon disbursement.