The Board of the BCRA will authorize non-resident investors to access the Free Foreign Exchange Market (Mercado Libre de Cambios, MLC) for the repatriation of new investments without prior approval. Access to the MLC will be granted provided the amount of the original investment was settled in that market, following the same criteria applied to financial flows linked to external financing. Within a macroprudential priority framework, these investments will be subject to a minimum holding period of six months, to be verified by the financial institution executing the inflow transaction.
The relaxation of these controls creates a more conducive regulatory background for attracting and channeling a greater volume of investments toward the domestic capital market. Setting a minimum time horizon serves as a prudential measure aimed at restricting capital inflows with highly speculative profiles, thus favoring greater stability and predictability in market dynamics.
This measure not only improves the operational framework for investors but also raises the possibility for Argentine financial assets to meet the eligibility criteria required by major international benchmark indexes. This potential inclusion increases their visibility and attractiveness, stimulating higher demand from institutional funds and other investment vehicles that replicate or track these indexes.
The possibility of channeling financial investments through the MLC also enables the futures market as a tool for hedging against foreign exchange risks. This possibility improves the conditions for all market participants and supports the development of domestic financial futures markets, boosting higher transaction volumes, greater liquidity and transparency in price formation.
NEW BOPREAL SERIES
The BCRA will issue a new series of Bonds for the Reconstruction of a Free Argentina (Bonos para la Reconstrucción de una Argentina Libre, BOPREAL) with a view to organizing repayments of inherited commercial debts incurred before December 12, 2023, as well as dividends and commercial and financial debt services retained with related institutions.
This new dollar-denominated, three-year-term BOPREAL series (Series 4) may be subscribed in pesos to cover the liabilities mentioned before. The bonds will accrue interest at a rate to be defined at the time of the first auction announcement and will pay interest every six months. The principal will be repaid in a lump sum at maturity. In the initial stage, a total issuance amount of up to USD3,000 million will be approved, to be awarded through successive auctions by subscription.
The auction dates for subscribing to these bonds will be announced in the coming days by the BCRA through a Communication B release.
Previous BOPREAL issuances successfully organized importers’ commercial liabilities accumulated as of December 12, 2023. This new issuance aims to resolve the retained stocks of dividends and debt services with related institutions, and supplements the relaxation of capital flow restrictions for accessing the MLC. This includes interest repayments on financial debts with related parties and profit distributions corresponding to fiscal years beginning on January 1, 2025.
These measures, which are part of stage 3 of the economic program, will support the ongoing normalization of the forex market and boost the capital market, contributing to monetary balance adequacy.
