{"id":216602,"date":"2019-09-14T09:53:45","date_gmt":"2019-09-14T12:53:45","guid":{"rendered":"https:\/\/cspabogados.com.ar\/?p=216602"},"modified":"2026-08-19T12:57:50","modified_gmt":"2026-08-19T15:57:50","slug":"foreign-exchange-regulations-in-argentina","status":"publish","type":"post","link":"https:\/\/cspabogados.com.ar\/en\/foreign-exchange-regulations-in-argentina\/","title":{"rendered":"New Foreign Exchange Regulations in Argentina"},"content":{"rendered":"

New Foreign Exchange Regulations in Argentina<\/h1>

by Mario Eduardo Castro Sammartino<\/a><\/span> | 14 Sep 2019<\/span><\/p><\/div><\/div><\/div>

The Argentine Executive Power, by means of the Urgency and Necessity Decree No. 609\/2009, established new foreign exchange regulations in Argentina controlling certain aspects of the inflows, outflows, purchase of foreign currency and other transactions as of 1 September 2019. These regulations have been complemented and extended by additional regulations issued by the Central Bank of the Argentine Republic (Banco Central de la Rep\u00fablica Argentina<\/em>, or BCRA after its Spanish acronym).<\/p>\n

Among the most significant provisions we find the following:<\/p>\n

1. Export proceeds<\/strong><\/p>\n

The foreign currency proceeds from the export of goods and services must be transferred into and \/or sold in the foreign exchange market. This measure will stand until 31 December 2019 (Decree No. 609\/2009, Section 1).<\/p>\n

Pursuant to the Communication \u201cA\u201d 6770 of the BCRA, as amended by Communication \u201cA\u201d 6776:<\/p>\n

a) Export of goods<\/em><\/p>\n

(i) The pending foreign currency collections from export of goods related to boarding permissions formalized\u00a0before 2 September 2019<\/strong>, as well as the new advance payments and export pre-financings, must be transferred into and sold for Argentine Pesos in the foreign exchange market within 5 business days as of the date of the collection or of the disbursement in the country or abroad (Communication \u201cA\u201d 6770, point 2); and<\/p>\n

(ii) The foreign currency collections from export of goods related to boarding permissions formalized\u00a0as of 2 September 2019<\/strong>, must be transferred into and sold for Argentine Pesos in the foreign exchange market within certain maximum terms, ranging from 15 to 180 calendar days, depending on the goods exported and the affiliations between the exporter and the importer<\/a>[1]. These terms shall start as of the date of the shipment\u00b4s certificate (cumplido de embarque<\/em>) of the export destination granted by Argentine Customs (Communication \u201cA\u201d 6766, point 1.1.1).<\/p>\n

Irrespective of said maximum terms, the export collections must be transferred into and sold for Argentine Pesos within 5 business days as of the date of the collection (Communication \u201cA\u201d 6770, point 1, final paragraph).<\/p>\n

The export proceeds may be used, in certain limited cases, to cancel advance payments and pre-export financings (Communication \u201cA\u201d 6770, point 3).<\/p>\n

b) Export of services<\/em><\/p>\n

The foreign currency collections from export of services must be transferred into and sold for Argentine Pesos in the foreign exchange market within 5 business days as of the date of the collection in the country or abroad or their credit to foreign accounts (Communication \u201cA\u201d 6770, point 4).<\/p>\n

2. Purchase of foreign currency<\/strong><\/p>\n

The purchase of foreign currency and precious metals (coins) in the foreign exchange market and its transfer abroad will have the following restrictions:<\/p>\n

a) Individuals<\/em><\/p>\n

(i) Resident individuals need prior authorization by the BCRA to access the foreign exchange market to create external assets, family aid, and granting of any kind of guarantees in relation to derivatives transactions, in all cases when exceeding USD 10,000 a month in the aggregate of institutions authorized to operate in the foreign exchange markets and for all the said purposes. When exceeding USD 1,000, transactions may not be executed in cash but through debit to local banking accounts (Communication \u201cA\u201d 6770, point 6).<\/p>\n

\u00a0(ii) Non-resident individuals have a monthly cap of USD 1,000 to access the foreign exchange market to purchase foreign currency in the aggregate of institutions authorized to operate in the foreign exchange, with certain numbered exceptions such as transactions made by international organizations and institutions with the role of official export credit agencies (Communication \u201cA\u201d 6770, point 7, and Communication \u201cA\u201d 6776, point 1.2).<\/p>\n

There are no restrictions for resident individuals to transfer foreign currency from their local foreign-currency-denominated accounts to their own accounts abroad (Communication \u201cA\u201d 6776, point 1.6.1.).<\/p>\n

b) Legal entities and others<\/em><\/p>\n

Legal entities, mutual funds, trusts, etc. will always need prior approval by the BCRA to access the foreign exchange market, to create external assets and grant any kind of guarantees related to the instrumentation of derivative transactions ((Communication \u201cA\u201d 6770, point 5.).<\/p>\n

3. Foreign financial indebtedness<\/strong><\/p>\n

Proceeds from foreign financial debts incurred as of 1 September 2019 must be transferred into and sold for pesos in the foreign exchange. This foreign currency settlement must be shown when accessing the foreign exchange markets to repay interest and capital (Communication \u201cA\u201d 6770, point 8).<\/p>\n

BCRA\u00b4s authorization will be required to access the foreign exchange markets to pay foreign financial indebtedness with more than 3 business days in advance to maturity (Communication \u201cA\u201d 6770, point 11).<\/p>\n

4. Foreign currency debts<\/strong><\/p>\n

It is forbidden to access the foreign exchange market to repay debts in foreign currency agreed upon between residents as of 1 September 2019 (Communication \u201cA\u201d 6770, point 9), with the exception of financings granted by local financial institutions, including payments for purchases made with credit cards in foreign currency (Communication \u201cA\u201d 6776, point 1.4).<\/p>\n

Access to the foreign exchange market is allowed to pay out debts contracted out before 1 September 2019 as long as they are implemented by means of public registries or deeds (Communication \u201cA\u201d 6770, point 9).<\/p>\n

Financings in foreign currency granted by local financial institutions to clients from the private non-financial sector must be sold for pesos in the foreign exchange market upon disbursement (Communication \u201cA\u201d 6776, point 2)<\/p>\n

5. Profits ands dividends<\/strong><\/p>\n

The BCRA\u00b4s authorization will be required to access the foreign exchange markets to purchase foreign currency and pay profits and dividends abroad (Communication \u201cA\u201d 6770, point 10).<\/p>\n

6. Imports of goods and services<\/strong><\/p>\n

Importers of goods and services will have to request the BCRA\u00b4s authorization:<\/p>\n

a) To prepay debts (Communication \u201cA\u201d 6770, point 12)<\/a>[2]; and<\/p>\n

b) To pay overdue or on demand debts for imports of goods with foreign affiliated companies when exceeding USD 2 million per month per resident client (Communication \u201cA\u201d 6770, point 13).<\/p>\n

7. Payment of services with affiliated companies<\/strong><\/p>\n

Prior BCRA\u00b4s authorization will be required for the payment of services to affiliated parties abroad, with some exceptions such as credit card issuers for transfers made for tourism and trips (Communication \u201cA\u201d 6770, point 14).<\/p>\n

8. Reporting regime on foreign assets and liabilities<\/strong><\/p>\n

To access the foreign exchange market to pay foreign financial and commercial debts, the interested party must submit evidence that the relevant transaction has been reported in the latest expired presentation of the reporting regime on foreign assets and liabilities established by the BCRA\u00b4s Communication \u201cA\u201d 6401 ( Communication \u201cA\u201d 6770, point 19).<\/p>\n

9. Criminal Exchange Regime<\/strong><\/p>\n

Any infringement to the foreign exchange regulations may result in indictments, and penalties of fines and prison terms.<\/p>\n

\n

\n

\n

Mario E. Castro Sammartino<\/p>\n

\u00a0<\/p>\n

\n

\n

\n

\n

<\/a>[1]The definition of affiliation between companies is that contained in the BCRA\u00b4s regulation on large exposures to credit risks (Communication \u201cA\u201d 6599, as amended, point 1.2.2.) (Communication \u201cA\u201d 6776, point 1.7).<\/p>\n

<\/a>[2]Submitting supporting documentation, showing evidence of the entry of good through customs within 180 business days as of the access to the foreign exchange market, and making payment in favor of the foreign supplier.<\/p>\n

\n

For additional information on these or any other issues related to doing business in Argentina, please,\u00a0sign up<\/a>\u00a0for our Legal Blog or\u00a0contact us<\/a>\u00a0at any time.<\/p>\n

Our publications exclusively express the\u00a0author\u00b4s opinion and do not purport to be legal counsel on any case. Should\u00a0you need it, you must consult with your trusted lawyer.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\n

 <\/p>\n<\/div><\/div><\/div><\/div><\/div>

<\/div>