Global Trade Alert

The Resolution No. 3/2015 issued on 16 December 2015, by the Argentine Ministry of Treasury and Public Finance amended the regime applicable to inflows of foreign currency through the foreign exchange market (originally set forth by Decree No. 616/2005).
 
The Resolution removes the requirement to hold a share of the foreign inflow in the form of non-transferable, non-interest-bearing deposits ('encajes'). Prior to the change, up to 30% of such inflows in this form. Furthermore, the Resolution reduces the minimum stay period from 365 to 120 calendar days (counted fromthe date when the funds entered into the jurisdiction of Argentina for the first time).
 
This applies to inflows of funds resulting from:

• Foreign financial indebtedness of Argentine residents of the private sector,
• The inflow of funds of non-Argentine residents holding positions in Argentine pesos,
• The acquisition of financial assets and liabilities in the private sector, and
• Investments in securities issued by the public sector acquired in secondary markets.