ANNOUNCED AS TEMPORARYNo
Controls on commercial transactions and investment instruments
On 7 June 2010, the Central Bank of Argentina published a circular delineating new rules applicable for foreign exchange assets of residents. On 27 October 2011, the amendments have been implemented and involve the following restrictions:
- Before the amendment, Argentinian residents and juridical entities who intended to invest in foreign currency (or foreign-currency-denominated assets) an amount equal to or greater than USD 250'000 had to provide proof that their foreign investments were compatible with the assets they owned in Argentina and/or the incomes they declared. With the amendment, the foreign investment must not only be compatible with assets owned and income earned, but it must not exceed the sum of what is declared as property in the country.
- With the amendment, foreign currencies can no longer be used on the secondary market to buy securities traded in the country and/or issued by residents (or their representatives). The regulation does not encompass entities authorized to exchange currencies or non-registered companies and associations.
The amendments effectively introduce more control on (and can thus impede) foreign currency exchange and investments.
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