Update on the Foreign Exchange Market in Argentina

After many years of foreign exchange controls and restrictions on the inflows and outflows of foreign currency, the federal administration that took office in December 2015 has progressively lifted all restrictions on the Foreign Exchange Market in Argentina until the current situation of complete freedom of exchange, with only reporting obligations to fulfill.

Under regulations presently in force, the main features of the Foreign Exchange Market in Argentina are the following:

  • All individuals and companies may freely access to and execute transactions in the foreign exchange market, with the sole obligations to channel them through a financial or foreign exchange entities authorized by the Central Bank of the Argentine Republic;
  • No caps apply;
  • The information regimes in place are: a) A Survey System of Direct Investments Abroad and in the Country. This semi-annual information regime applies when a non-resident owns an aggregate equal to or more than USD 500,000, either in Argentine companies’ equity (considering their net accounting assets) and /or real estate (taking into account its tax value); b) A Survey System of Debt Securities and other Foreign Debts of the Private Financial and Non-Financial Sector. This quarterly information regime tracks foreign indebtedness;
  • Payments of dividends to non-resident shareholders and repatriation of capital or portfolio investments are not subject to any restriction, nor do they require prior authorization; and
  • Proceeds from the exports of goods and services may be collected and kept abroad. There is no obligation to transfer to and settle the foreign currency in the local foreign exchange market.

To know more about the legal framework of foreign investments in Argentina, please, read our post http://cspabogados.com.ar/en/foreign-investments-in-argentina/. For additional information on these or any other issues related to doing business in Argentina, please, sign up for our Legal Blog or contact us at any time.

Mario Eduardo Castro Sammartino

Our publications exclusively express the author´s opinion and do not purport to be legal counsel on any case. Should you need it, you must consult with your trusted lawyer or may contact us at your convenience. If you liked the article, please, share it.

 

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