Publication and Communication BCRA “A” 7915: suspension of demand operations in the Foreign Exchange Market — Communication BCRA “A” 7914: new Ordered Text of Foreign Currency and Exchange.
Banking & Financial Institutions Department Report | Publication and Communication BCRA “A” 7915: suspension of demand operations in the Foreign Exchange Market — Communication BCRA “A” 7914: new Ordered Text of Foreign Currency and Exchange
Dear Sir or Madam,
Today, the Central Bank of the Argentine Republic (BCRA) published a statement (the “Publication”) informing that, as of today, demand operations in the Foreign Exchange Market can only be carried out with prior approval of the BCRA. This news item was confirmed with the issuance of Communication “A” 7915, which also clarifies that the provisions of the Publication also apply to the operations of financial and exchange entities.
Some issues to highlight:
– The requirement of BCRA’s approval only applies to “demand” operations; foreign currency receipts and settlements are not subject to prior approval. This is of special consideration; for example, for all operations subject to the mandatory settlement regime, such as exports of goods, services, etc., including those that expire today.
– It applies “as of today”, but there is no specified end date.
– It also applies to the operations of financial and exchange entities.
We remind you that the regime of the Decree of Necessity and Urgency No. 597/2023 (the “Decree”) that established the “50/50” benefit for the entry and settlement of exports (see our report – in Spanish only) was in force until yesterday, so the benefit does not apply to settlements made on the current date.
We believe that the prior consent requirement established by the Publication will suspend almost all fund outlay operations through the Exchange Market.
On the other hand, last Thursday, 12/07/2023, the BCRA issued Communication “A” 7914, by which a new version of the Ordered Text of Foreign Currency and Exchange of the BCRA (the “Ordered Text”) was announced. Certain modifications to the regulations are also included in the Ordered Text. In particular:
– A series of normative interpretations are made, and some points were reordered for easier reading (e.g., point 3.16.3 related to sworn declarations of operations with securities that must be presented to access the Exchange Market);
– The previous Section 12 is removed, which will become part of the regulations on the “Disciplinary Regime” of the BCRA;
– The regulatory body is adapted to the Decree provisions, which are no longer in force.
We do not delve into the interpretations and changes made to the Ordered Text since we expect further changes to the regulations in the forthcoming days.
Do not hesitate to contact us if you require any further information on this matter.
Sincerely,
Pablo J. Torretta