BCRA Tightens Foreign Exchange Regulations Further

Communique “A” 6815, dated October 28, 2019, further tightened foreign exchange regulations, amending Communiques “A” 6770 and “A” 6787 and establishing new regulations. Here is a brief summary of the new regulations adopted by the  Argentine Central Bank (the “BCRA”, after its acronym in Spanish) :

Access to the foreign exchange market by Argentine residents

• The maximum amount of foreign currency for which Argentine residents who are individuals may access the foreign exchange market for investment purposes without prior approval by the BCRA was reduced from the equivalent of USD 10,000 per month to the equivalent of USD 200 per month (when debited from local accounts) and from the equivalent of USD 1,000 to USD 100 per month (when purchased in cash with local currency) as the case may be.

Access to the foreign exchange market by non-Argentine residents

• The maximum amount of foreign currency for which non-Argentine residents may access the foreign exchange market without prior approval by the BCRA was reduced from the equivalent of USD 1,000 per month to the equivalent of USD 100 per month.

 

• Likewise, a new exception to this maximum amount was added in the case of transfers abroad by individuals who are beneficiaries of pensions paid by the Argentine Social Security Administration (ANSES), for up to the amount paid by such agency in said month and to the extent that the transfer is made to a bank account opened by the beneficiary in their registered country of residence.

Access to the foreign exchange market for the purchase of local real estate

• The possibility to use funds obtained in the form of subsidies under the Procrear Program is included for access to the foreign exchange market by individuals for the purchase of foreign currency to be used simultaneously for the purchase of real estate to be used as sole, familiar and permanently occupied residence.

Withdrawal of foreign currency cash by Argentine residents abroad

• Foreign currency cash withdrawals made abroad with local debit cards may only be made through debit to Argentine foreign-currency-denominated-accounts.

Foreign exchange trades between entities authorized to trade foreign currency

• Foreign exchange agencies must now carry out all foreign exchange trades in which their counterparty is an entity authorized to trade foreign currency through SIOPEL, or in accordance with item 3.6 of the Regulations on Foreign Exchange (Normas de Exterior y Cambios) of the BCRA, as applicable.

Payments of imports of goods in advance

• The term to evidence the nationalization of the goods through Customs, in the cases of advance payments of imports made to suppliers who are not related parties of the Argentine importer, was reduced from 180 to 90 calendar days.

 

• Prior BCRA approval will be required in order to make advance payments of imports to suppliers who are related parties of the Argentine importer.

Prior notice of foreign exchange trades in excess of USD 2 million

• Institutions authorized to trade foreign currency must notify the BCRA at the close of each day and at least 2 business days in advance of any information related to sales of foreign currency, either requested by customers or of the entity, which entail access to the foreign exchange market for amount equal to or higher than USD 2 million, for each of the 3 business days as from the first day in which the information is filed.
• Likewise, customers are required to provide authorized entities of such intended trades with sufficient time for the entities to comply with the item listed above.
• On the date of the intended transaction, the customer may execute any such transactions through any authorized entity. In these cases, the authorized entity which executes the transaction must have a certification issued by the informing entity that such intended trade has been duly reported.