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  5. Argentina: New requirements for access to the foreign exchange market

Argentina: New requirements for access to the foreign exchange market

25 Apr 2023    2 minute read
Central Bank of Argentina Foreign Exchange

In brief

On 20 April 2023, the Central Bank of Argentina (BCRA) issued Communication "A" 7746 which modified access requirements to the foreign exchange market for the payment of certain services abroad. Communication "A" 7746 states that the prior approval of the BCRA will be required to make certain payments abroad, extends the prior term of 90 days to a new term of 180 calendar for the limitation to access the local foreign exchange market (MLC, after its Spanish acronym) to entities performing certain securities transactions, and extends the list of persons and entities that may access a special remunerated account based on the evolution of the reference exchange rate of Communication "A" 3500.

Contents

In depth

On 20 April 2023, the Central Bank of Argentina (BCRA) issued Communication "A" 7746 ("Communication") establishing the following:

  1. Entities shall require prior approval from the BCRA to give access to the local foreign exchange market (MLC, after its Spanish acronym) to clients before 60 calendar days from the date of approval of the Systems of Imports of the Argentine Republic and Payments Services Abroad (or the Spanish acronym, SIRASE) declaration when the transaction corresponds to items S16, S17, S18, S19 and S22, except for certain cases indicated in the Communication.
  2. For the purposes of requiring access to the MLC for the payment of services to related counterparties abroad, local agents that collect funds corresponding to services rendered by non-residents to residents for items S02 and S04 will need to make the payment within 90 calendar days after the date of effective rendering of the service.
  3. Until 31 December 2023, and when the creditor is a counterparty related to the debtor, the BCRA's prior approval will be required to access the MLC to pay interest on commercial debts for imports of goods and services and/or financial loans abroad.
  4. For the purposes of the provisions of Section 3.16.1. of the Foreign Exchange regulations, the "advance payment of foreign exchange transactions" information systems shall only be deemed settled when the entity has stated the identity of the beneficiary of the payment and whether or not it is related to the customer who will make the payment.
  5. A term of 180 calendar days shall be applicable for the sworn statements referred to in items 3.8.4., 3.16.3.1., 3.16.3.2., and 3.16.3.4. of the "Foreign Exchange" regulations referring to transactions with marketable securities. For marketable securities issued under Argentine law, the term to be computed shall remain at 90 calendar days. For the purposes of the statements of items 3.16.3.1. and 3.16.3.4., the extension of the term shall only be considered for marketable securities transactions carried out from 21 April 2023.
  6. Customers may also credit the amount in pesos equivalent to the amount of interest payments that have not been made by the MLC as from maturity pursuant to the provisions of subsection (iii), in a special account whose remuneration is determined based on the evolution of the reference exchange rate of BCRA Communication "A" 3500 provided for in the rules on "savings, salary and special deposits."

The Communication became effective on 20 April 2023.

Click here to access the Spanish version.

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