Today, the Board of the BCRA has approved a new regulatory framework for the foreign exchange activity with the aim of providing greater competition and transparency to the forex market by including new and diverse suppliers and streamlining transactions.
Within the framework of Executive Order 27/2018, the BCRA provided that companies of any sector that operate regularly in the Free Foreign Exchange Market (Mercado Libre de Cambios, MLC) may work as a foreign exchange agency provided they register with the Registry of Foreign Exchange Traders. Natural persons may also do so provided that they have previously incorporated a single member corporation or a simplified stock company.
Thus, a supermarket, a chain of household appliances, a hotel or any other store will be able to conduct foreign currency transactions, just as any individual. This streamlines access to foreign exchange, particularly for foreign tourists.
Through a process of deregulation of the forex market, which started in December in 2015 through the exchange rate unification and the removal of restrictions, the BCRA continues working to increase the foreign exchange supply in a simple, legal and transparent way, removing incentives for marginal activities.
The Registry of Foreign Exchange Traders will be available online on the BCRA’s website and will be freely accessible. Once the registration process has been completed, the new foreign exchange agencies will be able to start operating immediately. Foreign exchange institutions that have been trading in foreign exchange will be included in the Registry automatically.
Through this mechanism, foreign exchange houses can also register. Unlike foreign exchange agencies, foreign exchange houses have foreign exchange transactions as their sole corporate purpose and must comply with a ARS5 million minimum capital requirement. Foreign exchange houses may also conduct foreign trade transactions and international transfers, which will allow them to compete with banks that offer these services to companies.
The provisions approved today by the Board of the BCRA will be effective as from March 1, 2018.
