{"id":8406,"date":"2020-08-03T18:12:48","date_gmt":"2020-08-03T18:12:48","guid":{"rendered":"https:\/\/allende.com\/sin-categorizar\/release-in-some-of-the-fx-restrictions-set-by-communique-a-7030-08-03-2020\/"},"modified":"2023-02-01T14:07:54","modified_gmt":"2023-02-01T14:07:54","slug":"release-in-some-of-the-fx-restrictions-set-by-communique-a-7030","status":"publish","type":"post","link":"https:\/\/allende.com\/en\/banking\/release-in-some-of-the-fx-restrictions-set-by-communique-a-7030-08-03-2020\/","title":{"rendered":"Release in some of the FX restrictions set by Communiqu\u00e9 \u201cA\u201d 7030"},"content":{"rendered":"

On June 11, 2020, pursuant to Communiqu\u00e9 No. \u201cA\u201d 7042, the Argentine Central Bank (the \u201cCentral Bank\u201d) provided a series of adjustments and clarifications with respect to Communiqu\u00e9 No. \u201cA\u201d 7030, issued on May 28, 2020, as a result of the requests made by the various local financial institutions. Communiqu\u00e9 No. \u201cA\u201d 7030 established a new series of restrictions to the access to the Foreign Exchange Market (the \u201cFX Market\u201d), mainly aimed at obliging the use of liquid foreign assets for the payment of foreign obligations before requesting access to the FX Market. <\/p>\n

The restriction of not having any local financings in Argentine pesos by MiPyMEs is lifted<\/strong><\/p>\n

Through Communiqu\u00e9 No. \u201cA\u201d 7001, the Central Bank had established the need to have prior written authorization of such entity to access the FX Market to cancel principal and\/or interest of all types of foreign indebtedness pending as of March 19, 2020, when the payment does not have a maturity date or when the maturity date has been set prior to such date, unless the interested party submitted an affidavit stating that it does not have outstanding financings in Argentine pesos provided by Communiqu\u00e9 No. \u201cA\u201d 6937[1] (as amended) and will not request such financing within the following 30 calendar days.<\/p>\n

By means of Communiqu\u00e9 \u201cA\u201d 7042, the Central Bank has waived such requirement. Therefore, companies benefiting from subsidized rate financing as a result of the COVID-19 pandemic will be able to access the FX Market to cancel their external financings. <\/p>\n

The limit of external liquid asset holdings allowed to access the FX Market is increased to USD 100,000<\/strong><\/p>\n

The new Central Bank regulation relaxed the restriction on holding foreign liquid assets to access the FX Market, establishing that, as of June 12, 2020, prior written authorization from the Central Bank won\u2019t be required to access the FX Market to carry out expenditures[2] to the extent that all of its foreign currency holdings in the country are deposited in local bank accounts and that it does not have external liquid assets available at the beginning of the day in which it requests access to the FX Market for an amount greater than the equivalent of USD100,000.<\/p>\n

The obligation, of who accesses the FX Market after May 28, 2020, to transfer to Argentina and exchange for Argentine pesos (within five working days of its availability), any proceeds received abroad from the collection of loans granted to third parties, the collection of fix-term deposits or the sale of any type of asset, when the asset has been acquired, the deposit constituted or the loan granted after May 28, 2020, is maintained in this new regulation.<\/p>\n

If the amount of USD100,000 in external liquid assets available is exceeded, the new regulation sets that aforementioned affidavit may also be deemed to have been fulfilled if the interested party provides evidence that such amount is not exceeded when it is considered that, partially or totally, such assets:<\/p>\n

    \n
  1. were used during that day to make payments that would have had access to the local exchange market;<\/li>\n
  2. were transferred on behalf of the client to a correspondent account with a local entity authorized to operate in foreign exchange;<\/li>\n
  3. are funds deposited in foreign bank accounts that result from: (i) collections of exports of goods and\/or services or advances, pre-financing or post-financing of exports of goods granted by non-residents; or (ii) the sale of non-produced non-financial assets; for which a period of 5 working days has not elapsed since their collection; or <\/li>\n
  4. are funds deposited in foreign bank accounts resulting from financial indebtedness abroad and their amount does not exceed the equivalent due for principal and accrued interests in the next 120 calendar days.<\/li>\n<\/ol>\n

    Moreover, it is pointed out that funds deposited abroad that cannot be used by the client because they are reserve funds or guarantee funds set up in accordance with the requirements of foreign indebtedness agreements or funds set up to guarantee foreign derivative transactions will not be considered as external liquid assets.<\/p>\n

    The restrictions on payment of imports is adjusted <\/strong><\/p>\n