The Argentine Central Bank ("ACB") has issued certain communications imposing new exchange controls in Argentina, as well as setting forth incentives for local companies indebted overseas in order to obtain debt reductions and term extensions in their negotiations with creditors.
The main aspects of the new regulations are:
- Communication "A" 3711: sets forth a 60% reduction (from US$ 500,000 to US$ 200,000) in the limit by which exporters are obliged to sell off their currency before the ACB. Thus, exporters must now settle their foreign currency for export sales in excess of US$ 200,000 directly with the ACB.
- Communication "B" 7472: reduced in an average 40% the net amounts in foreign currency which may be held by foreign exchange entities operating in the retail market on behalf of the ACB (US$ 300,000 net daily position for entities with 50 or more branches, and US$ 150,000 for entities with less than 50 branches).
