ANNOUNCEMENT 23 Oct 2019

The Government of Argentina has amended certain foreign exchange controls introduced by Communication “A” 6,770.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Official Gazette of Argentina. Boletín Oficila de la República Argentina. Banco Central de la República Argentina. Comunicación “A” 6814/2019. Available at: https://www.boletinoficial.gob.ar/detalleAviso/primera/219525/20191023?busqueda=1

Central Bank of Argentina. Banco Central de Argentina. Comunicado "A" 6770 del 1/9/2019. Available at: http://www.bcra.gov.ar/Pdfs/comytexord/A6770.pdf

Inception date: 23 Oct 2019 | Removal date: 31 Dec 2019

Controls on commercial transactions and investment instruments

On 23 October 2019, Communication “A” 6814/2019 from the Central Bank of Argentina has been published in the Official Gazette introducing certain amendments to Communication “A” 6,770.

One of the key amendments introduced relates to the repatriation of export receivables and repatriation proceeds from services exports. Concretely, according to the new Communication, the government will not require the settlement of the payment in Pesos as long as the following conditions are met:

  • The funds are transferred to a foreign currency account managed by a local financial institution;
  • The transfer takes place during the time period established in Communication "A" 6,770 for each operation (please, see related state acts); 
  • The funds in foreign currency are simultaneously applied to operations where access to the local exchange market is allowed; 
  • The use of this mechanism is neutral in tax matters.

The new rules have entered into force on 23 October 2019 and since they are an amendment of Communication “A” 6,770 which has a temporary character, it can be assume that this measure is to terminate on 31 December 2019.

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AFFECTED PRODUCTS

 
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