BCRA: New Consolidated Text of Argentine FX Regulations

Communique “A” 6844 (the “Communique”), enacted by the Argentine Central Bank ( the “BCRA”, after its Spanish acronym) established a new consolidated text on regulations on “Foreign Exchange” (Exterior y Cambios) for the BCRA. This Communique will be in force until December 31, 2019, and includes the provisions contained in Communiques “A” 6770, 6776, 6780, 6782, 6787, 6788, 6792, 6796, 6799, 6804, 6805, 6814, 6815, 6818, 6823, 6825, 6829, 6838 and Communique “B” 11892 (el “Consolidated Text”).

 

With the publication of the Consolidated Text, the BCRA has established a sole text of consultation in regards to FX regulations. Likewise, the BCRA has included changes and amendments in the mentioned regulations, amongst which the following stand out:

 

• Operational guidelines:

 

Operational guidelines applicable to institutions authorized to trade in foreign exchange by BCRA were incorporated and updated including, among others, provisions referring to queries or requests of prior approval made by clients before BCRA through financial institutions and the minimum requirements to be complied with.

 

• Exports of services:

 

The Consolidated Text clarifies that the obligation to bring to Argentina collections for the export of services and settle them for pesos through the FX market covers any services provided by an Argentine resident to a non-Argentine resident.

 

• Sale of non-financial non-produced assets:

 

It is clarified that the obligation to bring to Argentina the sums collected for the sale of non-financial non-produced assets and settle them for pesos through the FX market only covers cases in which the counterpart is a non- Argentine resident.

 

• Foreign financial indebtedness:

 

The Consolidated Text clarifies that foreign financial indebtedness disbursed as from September 1, 2019, will only be required to be brought to Argentina and settled for pesos through the FX market only if the debtor will require access to such market with the purpose of servicing principal and interest payments. This also applies in respect of issuances of Argentine residents of securities which are publicly registered in the country as from November 29, 2019, denominated and underwritten in foreign currency and whose services of principal and interest are payable locally in foreign currency.

 

Finally it is worth noting that although the Communique provides that the Consolidated Text will be in force until December 31, 2019, it does not clarify when its provisions will enter into force, as is usually the case with BCRA regulations, nor does it expressly abrogate the prior communiques mentioned above.