Foreign Exchange News In Argentina

In the last days of October 2011, the Argentine Government has adopted certain regulatory measures intended to maintain the value of the Peso against the US Dollar and adversely affecting particularly the Hydrocarbons, Mining and Insurance Industry, and repatriation of direct investments.

1. Hydrocarbons and Mining Industry

On past October 26, the Argentine Government reinstated the obligation of hydrocarbon companies (producers of crude oil and its derivatives, natural gas and liquid petroleum gas) and mining companies to sell in the local foreign exchange market the foreign currency proceeds of their exports.

In Argentina, simultaneously with the freeze of bank deposits and the establishment of restrictions on cross border transfers in the 2001 crisis, one of the main measures adopted by the Argentine Government was the reinstatement of the obligation to repatriate export proceeds (which has always been one of the first sources of foreign currency and a tool