Argentina: Central bank — Communications "A" 7551 and 7552 - Amendments to the Foreign Exchange Regime

In brief

By means of Communications "A" 7551 and 7552 ("Communications"), the Central Bank of Argentina (ACB) established new restrictions on access to the foreign exchange market ("FX Market") for the payment of imports of goods and/or services, and regulated the trading of securities for the order and on behalf of nonresident tourists.


Contents

In focus

The main points of the Communications are set out below.

  1. Outflows through the FX Market: To access the FX Market to purchase foreign exchange and transfer funds abroad, the applicant must provide a sworn statement indicating that it does not hold Argentine certificates of deposit representing foreign shares ("Cedears") and/or available liquid foreign assets exceeding the equivalent of USD 100,000. To this end and until 19 August 2022, the Cedears acquired until 21 July 2022 should not be taken into account. Furthermore, the applicant must declare under oath that they have not purchased Cedears on the day they apply for market access and during the previous 90 calendar days, undertaking not to do so in the following 90 days.
  2. Securities transactions on behalf and to the order of non-resident tourists: The entities authorized to operate in foreign exchange will be authorized to receive foreign currency from non-resident tourists and to arrange, on their behalf and to their order, the purchase of securities with settlement in foreign currency for their subsequent sale with settlement in pesos. To do so, the tourist must not have carried out any transactions exceeding the equivalent of USD 5,000 in the previous 30 days. The transaction may be settled on the basis of reference prices and be concluded within two working days.

To that end, financial entities are authorized to purchase foreign currency securities in the secondary market up to the equivalent amount in US dollars from non-resident tourists.

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