Argentine Central Bank Updates Foreign Exchange Regulations to Access Foreign Exchange Market

Communications "A" 7780, 7781, and 7721, issued on June 1, 2023, by the Argentine Central Bank (BCRA), amended certain foreign exchange regulations.

First, Communication "A" 7780 incorporated certain customs operations related to the operation of fuel suppliers for means of transport to the exceptions to the ‘monitoring of foreign exchange negotiations for exports of goods’ (SECOEXPO). The communication also establishes that, to collect the exports under the regime of onboard supply of foreign-flag vessels, the calendar month to be charged must be the one corresponding to the date on the shipment permit or afterwards (formerly, it was the ongoing calendar month).

Second, through Communication "A" 7781, the BCRA established that access to the foreign exchange market is permitted to pay imports of goods under transactions associated to an affidavit submitted through the Argentine System of Imports (SIRA), before the term established there expires, when accessing before the earliest date, simultaneously with settling funds originated in a financial indebtedness abroad, and if the following requirements are complied with:

1. The expiration date of the financing must be on or later than the date the goods are estimated to arrive to the country plus 15 calendar days, plus the term in the SIRA declaration -if applicable-.
2. The importer has an affidavit undertaking to complete the customs entry registration within 15 calendar days of the arrival of the goods.

The portion of the foreign financial indebtedness used for this purpose may not be used again to access the FX market through other mechanisms as of the entry and/or settlement of this type of transactions.

Third, Communication "A" 7782 extends to principal maturities of local governments related to debt securities issuances with registrations outside of Argentina; other foreign financial indebtedness, or issuances of debt securities with public registration in Argentina denominated in foreign currency. For these, the provisions of the Foreign Exchange Consolidated Text regarding refinancing of principal maturities of foreign currency liabilities includes, among others, the obligation to refinance the principal so that access to the FX Market in the original maturity will not exceed 40% of the principal amount maturing and the refinancing of the remaining principal with new external indebtedness with an average life of at least 2 years.

Finally, there is an exception to the filing of the refinancing plan before the BCRA prior to the maturity of principal to be refinanced. This may be up to 2 business days before the expiration date of the principal payment, if such filing is made before July 18.