BCRA: Elimination of the Obligation to Repatriate and Settle for Pesos Proceeds for Exports of Argentine Goods

Communique “A” 6363 (the “Communique”), enacted by the Argentine Central Bank (“BCRA” after the Spanish) abrogates the existing regulations regarding the obligation to repatriate and settle the proceeds derived from the export of Argentine goods, as of November 11, 2017.

In this sense, the Communique adapts the BCRA´s existing regulations to the provisions of Decree No. 893/2017 of November 1, 2017, (the “Decree”) which abrogated article 1 of Decree No. 2581/64 which provided for the obligation to repatriate to Argentina “the equivalent value in foreign currency of the exports of national products”. In turn, the Decree abrogated article 10 of Decree No. 1555/86, as well as Decree No. 1638/01, both of which regulated the foreign exchange market.

Likewise, the Communique abrogated the existing foreign exchange regulations applicable to pre-export financings.

The Communique, along with the Decree, are the last in a series of measures with the purpose of deregulating the Argentine foreign exchange market. After the enactment of both regulations, the only foreign exchange regulations which remain in place refer to operational aspects and the various applicable information regimes.