Argentina Central Bank clarifies and adjusts certain aspects of the new foreign exchange regulations
Legal Update:
On September 11, 2019 the Argentine Central Bank (“BCRA”) issued
Communiqué “A” 6780 that introduced, among others, the following clarifications
and adjustments to the exchange control regime in force since September 1, 2019
(see legal update about the reinstate of exchange restrictions):
1. Limitation on the formation of “foreign assets”
It is established as an additional requirement to access the foreign
exchange market for the purchase of foreign currency by resident individuals
within the limit of US$10,000 per month, the filing of an affidavit stating
that the purchased funds shall not be used for the purchase of securities in
secondary markets within 5 business days as from the date of settlement of said
foreign exchange transaction.
2. Limitation on derivative transactions
It is clarified that prior approval of the BCRA to access the local
exchange market includes all derivative transactions, including not only the
incorporation of guarantees but also premium and cancellation payments. In
addition, it is established that all derivative transaction settlements
performed on regulated markets in Argentina and carried out by entities
authorized to perform foreign exchange transaction shall be made in Pesos as
from September 11, 2019.
3. Limitation on import payments
With respect to the prior approval of the BCRA for payment of imports
to affiliates (either at sight or due) for an amount exceeding the equivalent
of US$2 million per month, it is clarified that it will be deemed “at sight or
due debts” those outstanding as of August 31, 2019, including those which due
date have occurred before such date and those with no stipulated due date.
4. Access to the exchange market by trusts
It is clarified that collateral trusts (fideicomisos de garantía)
constituted by residents issuers of debt securities have access to the local
exchange market as long as the respective issuer would have had access for
making the relevant payment.
5. Repatriation of non-financial, non-produced assets
Argentine residents will need to repatriate and to exchange into Pesos
the collections in foreign currency, paid either in Argentina or abroad, for
the disposition of “non-financial, non-produced assets” (activos no
financieros no producidos) within 5 business days from collection thereof.
Although the scope of such terms is not contemplated, in international accounts
(including the methodology followed by the National Institute of Statistics and
Censuses – Instituto Nacional de Estadísiticas y Censos) the concept
includes the sale of land by embassies and the sale of concession property
rights, trademarks, contracts, licenses, going concerns and the sale of sports
passes between resident and non-resident clubs.
6. Limitation on payments of services to non-resident affiliates
It is clarified that prior approval by the BCRA for the payment of
services rendered by non-Argentine resident affiliates shall not apply to the
payments abroad of reinsurance premiums as long as the transfer is performed in
favor of the foreign beneficiary authorized by the Insurance Superintendence (Superintendencia
de Seguros de la Nación).
7. Foreign exchange agencies
The authorizations granted to exchange agencies before September 1,
2019 which do not initiate activities before September 30, 2019 will expire as
of the latter date.
Should you need further information do not hesitate to contact Victoria
Funes and/or Fermín Caride.