The Central Bank Relaxes Foreign Exchange Restrictions On Derivatives

Foreign exchange regulation now allows Argentine residents to enter into derivative transactions with foreign counterparties without the need for Central Bank authorization.

On August 8, 2016, the Argentine Central Bank introduced substantial changes to the foreign exchange regulations by issuing Communiqué A 6037 ("Communiqué 6037"). Communiqué 6037 collected and systematized much of the changes introduced in recent months and also amended the regulations in certain areas. In connection with derivatives, it changed the paradigm from a general rule in which residents could not enter into derivative transactions with foreign counterparties unless they could benefit from an exemption to a general rule in which they do not need such authorization.