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16 June 2021

Argentine Central Bank issues new guidance for certain entities to access to the official foreign exchange market

The communique allows certain entities to access the official foreign exchange market without the prior authorization of the Argentine Central Bank.

On 4 June 2021, the Argentine Central Bank (BCRA) issued Communique A 7,301 (Communique), which exempts entities with a "Certification of increase in exports of goods in the year 2021" (Certificate) from requesting the BCRA’s approval to access the official foreign exchange market.

Background

On 1 September 2019, the Argentine Government published in the Official Gazette Decree 609/2019 (the Decree), which implemented foreign exchange regulations. The Decree established the obligation to convert into Argentine pesos (ARS), in the local financial system, the value of goods and services exported, in accordance with the conditions and terms to be established by the BCRA.

On the same date, the BCRA issued Communique A 6,770, which established various rules for exports of goods and services, imports of goods and services, foreign assets, nonresident operations, financial debt, debts between residents, and profits and dividends. For more information, see EY Global Tax Alerts, Argentina implements foreign exchange control regulations, dated 5 September 2019, Argentine Central Bank issues consolidated text of foreign-exchange regulations containing some definitions and clarifications, dated 3 January 2020, and Argentina issues guidance on foreign exchange regulations, dated 12 October 2020.

Communique A 7,301

Beginning 14 June 2021, exporters with a Certificate are exempt from the requirement to obtain the BCRA’s prior authorization to access the foreign exchange market in permitted transactions, such as the payment for services to related companies, the payment of profits and dividends, and the payment of the principal of financial debt between related parties.

To obtain a Certificate, exporters must comply with the following requirements:

  • The free-on-board (FOB) value of exports in 2021 is higher than the FOB value of the exports shipped in 2020.
  • The exporter does not register shipment permits that are past due for the entry and settlement of the foreign currency in the official foreign exchange market.
  • The exporter submits a sworn statement to the financial institution responsible for issuing the Certificate stating that the increase in exports corresponds to new commercial operations.
  • The exporter submits a sworn statement stating that neither the exporter nor its corporate group refused to participate in a price agreement when summoned by the Government or failed to comply with a price agreement that was already in force.

The Communique clarifies that the Certificate will be granted for a maximum amount that will be calculated based on the lower amount of (i) the total increase of the FOB value of exports in year 2021 or (ii) the equivalent to 30% of the FOB value of the computable exports for the year 2020. The maximum amount represents the cap at which the exporter will no longer be able to access the foreign exchange market without the BCRA’s approval.

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For additional information with respect to this Alert, please contact the following:

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young Abogados, Latin American Business Center, Madrid

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

Document ID: 2021-5673

 
 

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