At the end of last month we wrote an article summarizing the new currency regime in Argentina ("Argentine Business Law Watch -Currency Regime: What Does it All Mean?", February 27, 2002). Since then, the executive branch and the Central Bank have released additional rules regulating foreign currency exchange controls. This article briefly updates you on these additional rules.
Restrictions on Transfers of Currency Abroad
As reported in a previous publication ("Restructuring U.S. Dollar Obligations; Central Bank Approvals of Foreign Currency Transfers, January 16, 2002), the Central Bank restricted the purchase of foreign currency to cash transactions, unless acquired to pay financial obligations. In that case, subject to Central Bank approval, foreign currency may be acquired by check or wire transfer from a local bank account. While foreign currency transfers continue to require prior Central Bank approval, unfortunately, the approval criteria remains unspecified and the process
