Exchange Regulations

Author:Mr John O'Farrell
Profession:JP O'Farrell Abogados S.A.
 
FREE EXCERPT

On September 1st. 2019, the National Government released Decree Nº 609/2019, which was regulated in the same day (Sunday) by the Central Bank of the Argentine Republic ("BCRA") by Communication "A" 6770. With these regulations, with a temporary effect (only from September 1 until December 31, 2019, an exchange control has been re installed, which was almost completely flexible at the end of 2015.

Please find below the main aspects of the new regulation:

Restoration of the mandatory entry and settlement of the currencies from export transactions: Shipment Permissions formalized as from 02/09/2019 Transactions with related companies and exports included in the first table of the annex of the resolution 57/2016 (which includes as well commodities) with a maximum period of 15 days. Other transactions: 180 days. Notwithstanding the above expiration dates, the exporters will have to settle the currency in a maximum period of 5 business days after collection. (This means that the operations formally completed before 01/09/2019 are reached by this obligation [it reaches not only the collection of exports but also the advances and pre-funding]). The collection of exports of services must also be entered and settled in the same period, which is counted since its date of collection (locally or abroad). The collection of exports could be used to pay advances and borrowings of pre funding of exports in specific cases, and for the rest of the cases the authorization of BCRA is required. Individuals may purchase foreign currency by having access to the exchange market with a limit of USD 10,000 per month. It also determines the limit of USD 10.000 monthly for transfers of funds to foreign accounts per human person -without previous authorization- (For legal persons a previous authorization of the BCRA is required, without regard to the amount to be transferred). There are no limitations to extract dollars from the accounts, or restrictions on travelling outside the country (for legal entities or individuals). Previous authorization of BCRA to get access to the exchange market -mainly for the formation of external assets 1- of legal persons, i n div id u al s (regulating differently between residents: for whom the familiar support, constitution of warranties related to derivative transactions when they exceed the amount of USD 10.000 and non-residents, when they go over USD 1.000 monthly, it also establishes exceptions). BCRA must...

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