The Central Bank of the Argentine Republic (Banco Central de la República Argentina, the “Central Bank”) through Communiqué “A” 6815 dated October 28, 2019 (the “Communiqué 6815”), modified certain limits for accessing to the FX market set by Communiqué “A” 6770, as amended from time to time (the “Communiqué 6770”) and introduced new restrictions applicable for the creation of foreign assets for Argentine individuals and non-residents.
Amendments to Communiqué 6770
Creation of external assets by Argentine individuals
The limits set forth by Communiqué 6770 were modified as follows:
Argentine individuals must obtain prior approval from the Central Bank for the creation of external assets, the remittance of family aid and for entering into derivative transactions, in case the aggregate amount of the above-mentioned transactions exceeds the equivalent of US$ 200 per month in all entities licensed to operate in FX transactions.
When the aggregate amount traded over these items exceeds the equivalent of USD 100 per month in all authorized entities to operate in FX transactions, the transaction must be carried out with debit to local accounts.
Access to the local foreign exchange market for non-residents
The limits set forth by Communique 6770 were modified as follows:
Prior approval from the Central Bank will be required for non-residents to access the local foreign exchange market in case of purchase of amounts greater than the equivalent of US$ 100 per month in all entities licensed to operate in foreign exchange transactions.
There excepted from the limit on foreign currency purchase in the local foreign exchange market those transfers abroad on behalf of individuals who are beneficiaries of retirement and /or pension benefits paid by the National Social Security Administration (Administración Nacional de la Seguridad Social, the “ANSES” by its Spanish acronym), up to the amount paid by the ANSES for the respective calendar month and to the extent that such transfer be made to the bank account located and owned by the beneficiary of such retirement and /or pension in his country of registered residence;
Repayment of advances and export pre-financing loans
The Communiqué 6815 required a period of 90 days to prove the registration by the Argentine custom of the entrance of goods, in case of advance payments of imports to suppliers unrelated to the importer company and the prior approval of the BCRA for advance payments of imports to suppliers related to the importer.
New FX restrictions and controls set forth by Communication 6815
Cash withdrawal abroad with debit cards
The Communiqué 6815 established that cash withdrawals abroad with local debit cards as of October 28, 2019, can only be carried out with debit from the client’s local accounts in foreign currency.
Obligation to send daily information on exchange sales for up to a daily amount equal to or greater than the equivalent of USD 2,000,000
Through Communiqué 6815, it was established that the entities authorized to trade in the exchange market must send to the BCRA, at the end of each business day and with an anticipation of 2 business day notice, the information on the sales of foreign currency performed at the request of customers or operations of the entity for their own portfolio that implies access to the FX market for up to a daily amount equal to or greater than the equivalent of USD 2,000,000, for each of the 3 business days counted from the first day reported.
For this purpose, it was established that until the BCRA implements the corresponding information regime, the information requested must be sent to anticipooperaciones@bcra.gob.ar, with the following detail: (i) reporting entity; (ii) TAX ID (CUIT) and name of the client (including the operations by the entities for their own portfolio); and (iii) date of the operation, concept code and equivalent amount in USD.
In this sense, the clients of the authorized entities must inform them with the sufficient time to allow those entities to comply with this informative regime and, to the extent that simultaneously the remaining requirements in force by Communiqué 6770 are fulfilled, proceed to carry out the exchange operations.
The Communiqué 6815 also provides that on the day of the FX transactions will be carrying out, the client may choose to perform the exchange operations reported with any authorized entity. To this end, the intervening entity must have a record from the reporting entity that such exchange operation has been duly informed.
Access to the complete text of the Communiqué 6815 can be found here.
Access to a summary of the provisions set forth by Communiqué 6770 here.
This publication does not offer a legal opinion on specific matters. If necessary, you should seek specialized legal counsel.
For more information please contact:
Sebastián Luegmayer
Email LuegmayerS@eof.com.ar
Phone +54 11 4346 1045