Foreign trade and exchange regulations

The Free Exchange Market is established by Article 1 of Decree 260/02, as amended by Article 132 of Law 27,444.

In accordance with Article 2 of the aforementioned decree, foreign exchange operations must be carried out at the freely agreed exchange rate and be subject to the requirements and regulations established by the Central Bank of the Argentine Republic (BCRA).

In turn, Article 29 of the BCRA’s Charter provides that the institution is empowered to issue foreign exchange rules in accordance with current legislation and to exercise the supervision required by its compliance. For its part, Decree 609/19 – and its amendment, Decree 91/19 – establish that the equivalent value of exports of goods and services must be entered into the country in foreign currency or negotiated in the foreign exchange market, under the conditions and terms set by the BCRA.

They also empower the BCRA to determine in which cases access to the foreign exchange market to buy foreign currency or coined precious metals, as well as to make transfers abroad, will require prior authorization. They also empower it to issue regulations that prevent practices or operations aimed at circumventing these provisions by means of public securities or other instruments.

Currently, the current foreign exchange regulations are compiled in the Consolidated Text (TO) on Foreign Affairs and Exchange Rates and its complementary regulations.

Main points of the regulation:

• – Operations must be carried out through an entity authorized to operate in foreign exchange, which will request the documentation that allows it to verify the genuine nature of the operation and its correct framing according to the declared concept.
• – Each operation requires the preparation of a bill of purchase or sale of change, as appropriate, as an affidavit.
• – Non-compliance with the regulations is covered by the provisions of the Law on the Foreign Exchange Criminal Regime.
• – It is mandatory to settle in the foreign exchange market, within the established periods, the collection of exports of goods and services, as well as for the disposal of non-produced non-financial assets. For financial debts, liquidation is a condition for access to the foreign exchange market in order to pay principal and interest.
• – Exports made by individuals for professional, technical or other similar services are exempt from the liquidation obligation up to an annual amount equivalent to USD36,000 (thirty-six thousand US dollars)
• – Residents can access the foreign exchange market to make payments for imports of goods, services provided by non-residents, profits, dividends and financial debts, provided that they meet the specific conditions provided for each concept.
• – Access to the foreign exchange market to pay debts or other obligations in foreign currency between residents is not allowed, except for the exceptions provided.
• – Resident individuals can access the foreign exchange market without limit to form foreign assets in banknotes or deposits, provided that the operation is carried out by debit to an account in a local financial institution.

They can also access the formation of foreign assets under other modalities, send family aid or carry out derivatives operations, with a monthly limit and under certain conditions.
Legal entities require the prior approval of the BCRA to access the foreign exchange market for these purposes.

• – Non-residents must also have the prior approval of the BCRA, except for international organizations, diplomatic and consular representations, pension beneficiaries, among others.
• – Exceptions are those non-residents who wish to repatriate capital and income from portfolio investments in instruments listed on local markets authorized by the National Securities Commission, mutual funds without direct listing made up of these instruments, and demand or time deposits in local financial institutions.
• – Non-resident tourists in the country can repurchase up to USD 100 (one hundred US dollars) if the intervening entity verifies in the BCRA’s online system, that they have settled an equal or greater amount in the last 90 calendar days.
• – Except for resident individuals and entities authorized to operate in foreign exchange, those who wish to operate in the foreign exchange market must not have carried out in the previous 90 days operations that have allowed them to acquire foreign currency, cryptoassets or securities deposited abroad, and must commit not to carry out the operations during the following 90 days.
• – All queries or requests for prior compliance must be channeled through an authorized entity. The notes must be addressed to the Main Management of Foreign Affairs and Foreign Exchange and submitted to the Entry Desk of the BCRA, including an analysis of the framework carried out by the authorized entity and the necessary documentation.