The Argentine Central Bank (“Central Bank”) announced on April 11, 2025: (i) the creation of currency band for the U.S. dollar in the Free Exchange Market (“FX Market”), and (ii) the flexibilization of the foreign exchange controls, as summarized below.
I. FLOATING EXCHANGE RATE WITHIN BANDS
The Central Bank will allow the exchange rate to fluctuate freely within bands, with a floor of ARS 1,000 and a ceiling of ARS 1,400. These limits will be increased at a monthly rate of 1%.
II. LIFT OF FOREIGN EXCHANGE CONTROLS
The Central Bank also announced the following changes to the foreign exchange regime:
a. For Individuals:
All currency restrictions for individuals have been lifted. Individuals may now access the FX Market to purchase foreign currency without limitations. Also, the previous limitation for individuals preventing simultaneous access to the FX Market and the financial exchange market (Blue-Chip Swaps) has been lifted.
Additionally, in coordination with the Central Bank, ARCA (Argentine tax authority) will eliminate the current tax surcharge on foreign currency purchases through the FX Market, except for those applicable tourism and credit card payments of Argentine residents outside of Argentina. Moreover, with respect to blue chip swap transactions (known as contado con liquidación – CCL) the 1-day minimum holding period (parking) applicable to individuals (CNV RG 959/2023) will be removed.
b. For Legal Entities:
Dividend Payments:
The Central Bank has authorized access to the FX Market for dividend payments to non-resident shareholders corresponding to profits generated in fiscal years beginning on or after January 1, 2025.
Stock of outstanding balances:
For outstanding balances of dividends and intercompany debt services, the Central Bank will issue a new series of Bonds for the Reconstruction of a Free Argentina (BOPREAL). These bonds may be purchased in pesos to meet foreign obligations related to debt or dividends accrued before 2025, and trade debts dated before December 12, 2023.
c. Payment for New Imports and Services:
- Imports of goods may be paid through the FX Market upon customs entry registration (previously 30 days delay).
- Imports of goods by small and medium-sized businesses may be paid through the FX Market from the time of shipment at port of origin (previously 30 days after customs registration).
- Imports of capital goods may be paid through the FX Market with a 30% advance, 50% upon shipment from the port of origin, and 20% upon customs entry registration (previously 20% advance, and only for small and medium-sized businesses).
- Imports of services may be paid through the FX Market upon service provision (previously 30 days delay).
- Imports of services between related companies may be paid through the FX Market 90 days after the service is rendered (previously 180 days delay).
d. One-Time Removal of FX restrictions:
To regularize payments of outstanding commercial and financial debts that may only be paid through the blue-chip swaps), the Central Bank has removed, as a one-time measure, the 90-day lookback restriction. This will allow legal entities to resume operations in the FX Market efficiently.
e. Elimination of the Export Program (80/20 or “Dólar Blend”):
The 80/20 benefit program allowing exporters to settle 80% of their proceeds in the FX Market and 20% in the financial exchange market (Blue-Chip Swap), at a preferential exchange rate, has been discontinued. Export proceeds must be repatriated through the FX Market with no preferential rate. However, deadlines for the repatriation and settlement of foreign currency for goods and services exports in the FX Market will remain unchanged.
