Key Changes to Foreign Exchange Regulations

New Central Bank Regulations for Financial Trusts

 

On December 19, 2024, the Argentine Central Bank (BCRA) issued Communication "A" 8160, which allows trustees of financial trusts with public offerings to access to the foreign exchange market to pay their debt securities, if they meet these requirements:

 

1. their debts must be denominated and subscribed in foreign currency,
2. payments of principal and interest must be made in foreign currency in Argentina.

 

All funds obtained from the issuance of these instruments must be settled in the foreign exchange market.

 

Until now, access to the foreign exchange market was only permitted for paying principal and interest on secured notes or promissory notes.

 

The BCRA publicly stated that this measure aims to “promote the use of instruments that allow individuals to channel their savings in USD within a framework of currency competition.”

 

Rules for Intercompany Interest Payments Now Eased

 

On December 19, 2024, the Argentine Central Bank (BCRA) issued Communication “A” 8161, introducing relevant amendments on access to the foreign exchange market for payments of commercial and financial debts to related counterparties abroad.

 

Effective January 1, 2025, access to the foreign exchange market may be requested to pay, at maturity, compensatory interest accrued on the outstanding original value of financial debts with foreign related counterparties, without requiring the BCRA's prior approval.

 

However, interest due as of December 31, 2024—as well as punitive or other equivalent interest accrued on or after January 1, 2025—will remain subject to prior approval.

 

The requirement to obtain prior approval from BCRA to access the foreign exchange market to pay the principal of financial debts to related creditors remains in effect, except for the cases that fall under the exceptions outlined in the foreign exchange regulations.

 

Central Bank Establishes New Restrictions on the Sale of Securities Acquired Abroad

 

In its Communication “A” 8178, published on January 16, 2025, the BCRA introduced a new restriction for entities purchasing securities in primary subscription with foreign currency settlement abroad (NY Dollars). These entities will be required to wait a minimum of 90 days before selling the securities in the secondary market with settlement in foreign currency within Argentina. This restriction will not apply to sales made with directly with settlement in NY Dollars abroad.

 

The regulation became effective on January 20, 2025.