Chapter

ARGENTINA

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2004
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(Position as of December 31, 2003)
Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: May 14, 1968.
Exchange Arrangement
CurrencyThe currency of Argentina is the Argentine peso.
Exchange rate structureUnitary.
Classification
Managed floating with no preannounced path for the exchange rateThe exchange rate of the Argentine peso is determined in the interbank market in which the Central Bank of Argentina (BCRA) plays an active role. All foreign exchange transactions must be effected through the free and unified foreign exchange market (MULC).
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketThere are two forward markets; transactions in these markets are settled by netting in domestic currency.
Arrangements for Payments and Receipts
Prescription of currency requirementsTransactions with countries with which there are no payments agreements must be settled in freely convertible currencies. Effective January 2, 2003, there is a monthly ceiling of the equivalent of US$150,000 on foreign exchange purchases by residents for various purposes (previously, US$100,000). This limit was raised to US$200,000 on March 13, 2003; to US$300,000 (or an amount equal to tax payments on monthly financial transactions, whichever is greater) on March 27, 2003; and to US$500,000 (or an amount equal to three times the tax payments on monthly financial transactions, whichever is greater) on May 6, 2003.
Controls on the use of domestic currencyDomestic banknotes and coins may be used for buying foreign exchange for any purpose, in accordance with BCRA authorization requirements.
Foreign exchange sales are settled with peso banknotes, personal checks, or an account debit. Previously, these transactions were subject to the “corralito” account arrangement, which restricted the flow of funds outside the banking system by limiting cash withdrawals and directing domestic payments into accounts within the banking system. Reprogrammed deposits under “corralon” frozen time deposits may be used only for a few domestic payments and transfers.
For current transactions and paymentsYes.
For capital transactionsYes.
Transactions in capital and money market instrumentsEffective June 30, 2003, the use of foreign exchange in the local market must be registered with the BCRA; foreign exchange entering the local market may be transferred abroad only after a lapse of 180 calendar days (the 180-day minimum does not apply to foreign trade and direct investment operations).
Use of foreign exchange among residentsTransactions in foreign currencies are permitted, and contracts based thereon are legally enforceable.
Payments arrangements
Bilateral payments arrangementsYes.
OperativeArgentina has agreements with Cuba, Malaysia, and Russia. Payments between Argentina and these countries are settled on a voluntary basis through accounts opened at the BCRA and the other central banks concerned, with the exception of Cuba, where settlement through the accounts specified in the agreement concerned is obligatory.
Regional arrangementsWithin the framework of the multilateral clearing system of the LAIA, payments between Argentina and other LAIA countries are settled voluntarily through payments agreements and a reciprocal credit mechanism.
Clearing agreementsYes.
Administration of controlExchange regulations are established by the BCRA in accordance with the policy set by the national executive. All exchange transactions must be carried out through specially authorized entities. These authorized entities include banks, exchange agencies, exchange houses, exchange offices, and financial companies. Each type of institution is subject to separate regulations. Authorized entities may enter into foreign currency swaps with (1) foreign banks whose head office is located in a member country of the Basel Committee on Banking Supervision and are rated at least A by a rating agency listed in the registry of the BCRA; (2) entities owned by a foreign government; and (3) branches of state-owned banks in Argentina. BCRA approval is required for transactions with other counterparts. Transfers of foreign banknotes abroad against imports of domestic banknotes exceeding the equivalent of US$5,000 a month require BCRA approval.
International security restrictions
In accordance with UN sanctionsRestrictions are imposed on current payments with respect to Iraq, Libya, and Serbia and Montenegro.
Payments arrearsEffective March 27, 2003, payments of external arrears up to US$5 million are permitted under certain conditions. On May 6, 2003, this limit was lifted.
PrivateEffective January 27, 2003, an agreement was entered into whereby nonfinancial private sector entities with unrestructured external obligations may make transfers to a U.S. dollar-denominated trust fund for a period of 60 days in amounts no greater than 3% of the external debt in arrears, with the understanding that these funds will be used to cancel debt obligations once outstanding debts have been restructured.
Effective February 13, 2003, the limit on transfers to a U.S. dollar-denominated trust fund by nonfinancial private sector entities with unrestructured external obligations was raised to 5% of internal debt in arrears. On May 6, 2003, this limit was lifted.
Controls on trade in gold (coins and/or bullion)
Controls on domestic ownership and/or tradeResidents may hold gold coins and gold in any other form in Argentina or abroad. Financial institutions, exchange houses, and exchange agencies may buy or sell gold in the form of coins or gold bars among themselves, and may buy such gold from their clients, as well as other precious metals, the market value of which is based on the daily list prices of major transactions.
Controls on external tradeImports of gold bars are not restricted. Imports of gold by industrial users are subject to a statistical duty of 0.5% and a sales tax. Authorized institutions may export gold coins or bullion to entities abroad with prior BCRA authorization. Proceeds from gold exports must be received in convertible currencies. Exports of coins and precious metals exceeding US$10,000 or its equivalent require BCRA approval.
Controls on exports and imports of banknotes
On exports
Foreign currencyExports of foreign currency exceeding the equivalent of US$10,000 require prior BCRA authorization and must be made through entities subject to supervision by the Superintendency of Financial and Exchange Entities.
Resident Accounts
Foreign exchange accounts permittedAuthorized banks may open demand deposit accounts in dollars, and time deposits, private securities, and term investments may be denominated in dollars and euros. Authorized banks may open deposit accounts in other foreign currencies with BCRA approval. In addition, they may accept deposits of public and private securities and term investments in dollars and euros. In all cases, the appropriate identification requirements (intended, inter alia, to prevent money laundering) must be met.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyNo.
Nonresident Accounts
Foreign exchange accounts permittedThe regulations governing resident accounts apply.
Domestic currency accountsYes.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for imports
Minimum financing requirementsEffective January 1, 2003, the minimum financing requirements on all imports were lifted. Imports of goods may be paid in full in advance with proof of imports within 180 days of the advance payment (this limit is extended in the case of capital goods). Previously, minimum financing requirements were imposed on import payments that could be made at the official exchange rate and on the unified market. Consumer goods may be fully financed abroad for periods of 45, 90, or 180 days, depending on the type of product, and capital goods with values of less than the equivalent of US$200,000 could be financed abroad for up to 30% of their value, and the remainder financed abroad for a minimum period of 180 days after shipment; capital goods valued at more than US$200,000 could be financed abroad for up to 20% of their value, and the remainder may be financed abroad for a minimum of 360 days after shipment. These requirements were eased gradually prior to their elimination.
Advance payment requirementsEffective May 1, 2003, all restrictions on advance payments were lifted. Exporters could make advance payments for imports up to 20 days with their export receipts. Effective January 7, 2003, goods less than the equivalent of US$20,000 (f.o.b. value) in value could be paid fully in advance; capital goods between US$20,000 and US$100,000 could be paid in advance up to 30% of the import value and the rest must be financed abroad for a minimum period of 90 days after shipping; goods between US$100,000 and US$200,000 may be paid in advance up to 30% of the import value and must be financed abroad for a minimum period of 180 days; and amounts exceeding US$200,000 could be paid in advance up to 20% of the import value and the rest financed abroad for a minimum period of 360 days (an additional 15% could be prepaid upon receipt of bills of lading). Prior to that date, these regulations applied to capital goods only.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measuresImport licenses are required for paper products and footwear.
Negative listRestrictions are in force for security, hygiene, and public health reasons.
Open general licensesOGLs are required for a limited list of products.
Licenses with quotasTrade with Brazil in the automobile sector is subject to an administered trade agreement. Under bilateral agreements there are quotas with preferential tariffs for automobile sector products.
Other nontariff measuresNontariff barriers are not applied to intra-MERCOSUR trade. Argentina, however, applies a special regime to sugar imports with the authorization of MERCOSUR, pending agreement on a common regime for this sector. Imports of secondhand clothing, used and retreaded tires, and some used capital goods are prohibited, except for import by nonprofit organizations.
Import taxes and/or tariffsArgentina and MERCOSUR apply a CET to imports from the rest of the world that encompasses all products. CET rates currently range from zero to 20%. Argentina is following a timetable for convergence with the CET for a list of computer and telecommunications products until 2006. The national list of exception now covers 100 products with a maximum tariff of 26%. The import tariffs on some capital goods and computer and telecommunications products may be reduced to zero.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsExport proceeds must be repatriated and sold in the foreign exchange market within a maximum of 60 to 360 days, depending on the types of products involved (in accordance with the terms stipulated by the Secretariat of Industry, Commerce, and Mines). In addition to the term stipulated by the Secretariat, the BCRA may stipulate a repatriation period of 10 business days. On March 25, 2003, this period was reduced to 5 business days, and it was subsequently extended to 30 business days on March 27, 2003, and to 90 days on May 6, 2003. Proceeds from exports of capital and finished goods may be repatriated within up to three years if they are covered by a guarantee from banks abroad in the form of an LC or letter of guarantee. Export proceeds need not be repatriated for (1) exports that have received specific exemptions under law or executive decrees and have been contracted with the government; (2) exports that are to be used to settle export advances or service principal and interest on export financing and prefinancing loans; (3) exports that have been earmarked to service properly recorded financial contracts that include a guarantee in effect on or since November 30, 2001 (subject to BCRA approval); and (4) proceeds from exports that will be used to repay principal on financial liabilities to foreign entities outstanding on November 30, 2001, that have been restructured on terms exceeding five years on average (subject to BCRA approval).
Surrender requirementsEffective May 6, 2003, the requirement to surrender certain export proceeds to the BCRA was lifted. Surrender requirements apply only to operations settled outside the terms established in the exchange regulation at an exchange rate in effect on the due date of the transaction if that rate is lower than the rate on the day of actual settlement. Previously, exporters were required to surrender export proceeds exceeding a threshold to the BCRA at the market rate; effective January 16, 2003, this threshold was raised to the equivalent of US$1 million (previously, US$200,000) and the surrender requirement for receipts from export financing and advance payments was eliminated.
Financing requirementsNo.
Documentation requirementsNo.
Export licenses
Without quotasLicenses are required for exports of arms, sensitive goods, and military materials.
With quotasThere are quantitative restrictions on exports of protected animal species.
Export taxesExport duties ranging from 5% to 20% apply to all exports, except for some fuels.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersEffective January 1, 2003, no restrictions apply on payments for current transfers. Previously, a limit applied to purchase of foreign exchange without prior authorization.
Investment-related payments
Prior approvalEffective January 1, 2003, payments of profits, dividends, or interest do not require prior approval. Previously, prior approval was required to make interest payments on bonds and financial obligations on local government debt. In addition, prior authorization of the BCRA was required for remittance of profit and dividends.
Other payments
Prior approvalEffective January 1, 2003, no restrictions apply on payments of reinsurance. Previously, payments of reinsurance premiums required prior verification from the National Superintendency of Insurance of the validity of the payment.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsProceeds from exports of services must be repatriated and either sold in the foreign exchange market or deposited in a foreign exchange account within 105 business days of receipt.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsEffective January 2, 2003, repayment of the principal on nonfinancial private sector debts no longer requires BCRA prior approval, provided that the amount paid by the original financial debtor did not exceed a monthly equivalent of US$150,000 (this ceiling was raised to US$300,000 on February 13, 2003, and to US$1 million on March 13, 2003). Effective February 13, 2003, the prior approval requirement for servicing of nonfinancial private sector debts was abolished, provided that servicing related to financial debts did not exceed the equivalent of US$1 million (this ceiling was raised to US$3 million on March 13, 2003, and to US$5 million on March 27, 2003). Effective May 6, 2003, the prior approval requirement for servicing of nonfinancial and financial private sector debts was abolished, except for servicing of debts by financial entities that have opted for the BCRA’s refinancing mechanism. In these cases, the financial entities must present a restructuring plan for their external liabilities to the BCRA for approval. Once approved, payments may be made in accordance with the schedule agreed to with the creditors without further BCRA approval. BCRA regulations require that new financing in the form of financial credits to or bond issues by private borrowers be matched by foreign exchange sales to the MULC and the funds remain in the country for a minimum of 180 days.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Sale or issue locally by nonresidentsUnder the regulations of the National Securities Commission (CNV), foreign and Argentine issuers must meet the same requirements to make a public offering of securities in Argentina. Both must establish a permanent representative office and a domicile in Argentina to receive notices. Foreign issuers must state whether the securities are also being offered to the public in their country of origin and specify the initial and periodic information requirements to which they are subject. If the CNV believes that the regulations in the country of origin properly protect local investors and guarantee an adequate flow of information, the CNV may lower the requirements for these issuers. The CNV may authorize foreign issuers on a case-by-case basis to submit only such information as they would periodically submit to the corresponding authority in their jurisdiction of origin.
Issuers of public offerings of securities domestically and abroad must submit to the CNV all information in Spanish required by the entities authorizing the public offering and listing abroad.
Purchase abroad by residentsAlthough there are no specific controls on residents’ purchases of foreign securities abroad, their purchases may be limited as a result of restrictions on capital flows from Argentina to foreign jurisdictions. Effective March 27, 2003, the monthly limit on foreign exchange purchases for financial investment abroad without prior BCRA approval was increased to the equivalent of US$300,000 from US$200,000. On December 31, 2003, this limit was further increased to US$500,000. This limit may be raised based on payments of (1) export duties and (2) taxes on bank credits and debits.
Bonds or other debt securities
Sale or issue locally by nonresidentsThe regulations governing the sale or issue of shares or other securities of a participating nature apply.
Purchase abroad by residentsNo specific controls apply on the purchase of foreign securities abroad by residents; however, effective December 31, 2003, such purchases are limited to the equivalent of US$500,000. This limit may be raised based on payments of (1) export duties and (2) taxes on bank credits and debits.
Sale or issue abroad by residentsYes.
On money market instrumentsThe regulations governing the foreign exchange aspects of bonds or other debt securities apply.
Sale or issue locally by nonresidentsThe regulations governing domestic issuers also apply. In particular, approval by the CNV is required for public offering. In addition, commercial paper must have a minimum maturity of seven days.
Purchase abroad by residentsThe regulations governing bonds or other debt securities apply.
Sale or issue abroad by residentsYes.
On collective investment securities
Sale or issue locally by nonresidentsApproval by the CNV is required for public offerings.
Purchase abroad by residentsThe regulations governing bonds or other debt securities apply.
Controls on derivatives and other instruments
Sale or issue locally by nonresidentsApproval by the CNV is required for public offerings.
Purchase abroad by residentsAccess to the foreign exchange market for forward and other derivatives contracts—except for currency, interest rate, and commodity swaps—is subject to BCRA approval.
Sale or issue abroad by residentsYes.
Controls on credit operations
Financial credits
By residents to nonresidentsResidents may extend credits to nonresidents within the limit for the accumulation of external assets. Effective January 2, 2003, a monthly ceiling of US$150,000 or the equivalent applies on extension of financial credits (previously, US$100,000). This limit was raised to US$200,000 on March 13, 2003; to US$300,000 on March 27, 2003; and to US$500,000 on May 6, 2003.
To residents from nonresidentsFinancial credits by the private sector must be matched by sales on the MULC and must have a minimum maturity requirement for new external borrowing of 180 days (prior to June 30, 2003, 90 days).
Controls on direct investment
Outward direct investmentResidents may access the MULC for direct investments within the limits for accumulation of external assets. Investments exceeding this limit require BCRA approval.
Inward direct investmentEffective December 31, 2003, repatriation of inward direct investments by nonresidents is subject to a limit of US$5,000 or the equivalent a month on sales of foreign exchange to nonresidents. Investments exceeding this limit require BCRA approval.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase abroad by residentsYes.
Purchase locally by nonresidentsPurchases of real estate in border areas by foreign investors require prior approval for the project from the Border Superintendency of the Ministry of Defense for national security reasons.
Sale locally by nonresidentsThe regulations governing inward direct investments apply.
Controls on personal capital transactionsNo.
Provisions specific to commercial banks and other credit institutions
Lending to nonresidents (financial or commercial credits)Credits granted by financial intermediaries must be used in the country and must finance investment, production, commercialization, and consumption of goods and services for internal consumption or export.
Purchase of locally issued securities denominated in foreign exchangeThere are limits on the maximum amount of securities a bank may hold from a particular issuer; however, purchases of securities against delivery of assets require prior BCRA approval.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsForeign exchange bureaus are required to keep positions in external assets exceeding the equivalent of US$1.5 million in a dollar account at the BCRA.
Investment regulations
Abroad by banksTransactions are prohibited by virtue of policies on general lending.
Open foreign exchange position limitsEffective June 26, 2003, the limit on banks’ U.S. dollar exposure is 10% of a bank’s net worth (previously, on January 23, 2003, this limit was increased to 8% from 6%).
There are regulations on the minimum capital held against market risks. The limits on the overall foreign exchange position to be held against market risks were adjusted as follows: (1) in the case of banks obtaining rediscount from the BCRA in amounts exceeding 50% of net liabilities, the limit was reduced by 50%; (2) in the case of banks that have made a capital injection in foreign currencies after December 3, 2002, the limit was increased by 40%; (3) in cases involving checks bought from third parties in correspondence accounts or banks that operate in more than 15 agencies, the limit was increased by the equivalent of US$500,000; and (4) in cases involving currencies other than the U.S. dollar and the euro, the limit was increased by US$1 million (Communication A 3645). Effective February 13, 2003, the limit on the overall foreign exchange position (defined as foreign currency liquid assets held abroad plus long spot and forward positions in foreign currency securities of foreign issuers and domestic holdings of foreign currency banknotes and coins) is the equivalent of 10% of regulatory capital outstanding at end-November 2001 or US$1 million, whichever is larger. The same requirement applies to financial entities. Effective May 1, 2003, the absolute value of the overall net position in foreign exchange—as a monthly average of daily balances converted to pesos at the reference exchange rate—may not exceed 30% of the net liabilities of the preceding month (Communication A 3889).
When the net foreign exchange position is positive, the amount may not exceed that proportion of liquid own resources. Excesses may be subject to a charge of up to the equivalent of twice the nominal annual interest rate resulting from auctions of BCRA instruments in U.S. dollars or twice the 30-day LIBOR for operations in U.S. dollars as reported for the last working day of the relevant month, whichever is greater.
Provisions specific to institutional investors
Limits (max.) on securities issued by nonresidentsYes.
Limits (max.) on investment portfolio held abroadThere is a 25% limit on investment for mutual fund portfolios, but this limit does not apply to MERCOSUR countries and Chile. For diversification, no more than 10% of pension funds may be invested in securities issued by a foreign sovereign, or in securities of foreign corporations issued abroad.
Limits (min.) on investment portfolio held locallyWhen a mutual fund consists of securities, a minimum of 75% of the investment must be made in assets issued and traded in Argentina, including those issued by MERCOSUR countries and Chile.
Currency-matching regulations on assets/liabilities compositionYes.
Other controls imposed by securities lawsDue to the implicit risk associated with open foreign exchange positions in currencies other than the U.S. dollar, additional capital is required to cover those risks. Deposits and loans in these currencies are computed to build the position.
Changes During 2003
Arrangements for payments and receiptsJanuary 2. The monthly ceiling on residents’ foreign exchange purchases for various purposes was raised to the equivalent of US$150,000 from US$100,000.
January 27. An agreement was entered into whereby nonfinancial private sector entities with unrestructured external obligations may make transfers to a U.S. dollar-denominated trust fund for a period of 60 days in amounts no greater than 3% of the external debt in arrears, with the understanding that these funds will be used to cancel debt obligations once outstanding debts have been restructured.
February 13. The limit on transfers to a U.S. dollar-denominated trust fund by nonfinancial private sector entities with unrestructured external obligations was raised to 5% of internal debt in arrears.
March 13. The monthly ceiling on residents’ foreign exchange purchases for various purposes was raised to the equivalent of US$200,000 from US$150,000.
March 27. The monthly ceiling on residents’ foreign exchange purchases for various purposes was raised to the equivalent of US$300,000 from US$200,000, or an amount equal to the tax payments on monthly financial transactions, whichever is greater.
March 27. Payments of external arrears of up to the equivalent of US$5 million were allowed under certain conditions.
May 6. The monthly ceiling on residents’ foreign exchange purchases for various purposes was raised to the equivalent of US$500,000 from US$300,0000, or an amount equal to three times the tax payments on monthly financial transactions, whichever is greater.
May 6. The limit of up to the equivalent of US$5 million on payments of external arrears was lifted.
May 6. The 5% limit on transfers to a U.S. dollar-denominated trust fund by nonfinancial private sector entities was lifted.
June 30. Registration with the BCRA was required for capital transactions involving foreign exchange.
Imports and import paymentsJanuary 1. The minimum financing requirements on all imports were lifted.
January 7. Advance payments were allowed for goods valued at less than the equivalent of US$20,000 (f.o.b.). Goods valued in excess of US$20,000 up to US$100,000 or the equivalent could be paid in advance for up to 30% of the import value; the remainder must be financed abroad for a minimum of 90 days after shipment. Goods valued in excess of US$100,000 up to US$200,000 or the equivalent could be paid in advance for up to 30% of the import value, and the remainder must be financed abroad for a minimum of 180 days after shipment. Goods valued in excess of US$200,000 or the equivalent could be paid in advance for up to 20% of the import value, and the remainder must be financed abroad for a minimum of 360 days after shipment (an additional 15% may be prepaid upon receipt of bills of lading).
May 1. Advance payment requirements for imports were lifted.
Exports and export proceedsJanuary 16. The threshold of proceeds the excess of which must be surrendered to the BCRA was raised to the equivalent of US$1 million from US$200,000. Advance payments and prefinancing proceeds were no longer required to be surrendered to the BCRA.
March 25. The period during which repatriated export proceeds must be sold in the foreign exchange market or surrendered to the BCRA was reduced to 5 days from 10 days.
March 27. The period during which repatriated export proceeds must be sold in the foreign exchange market or surrendered to the BCRA was changed to 30 days from 5 days.
May 6. The period within which the surrender requirement must be effected was increased to 90 days from 30 days.
May 6. Surrender of certain export proceeds to the BCRA was eliminated.
Payments for invisible transactions and current transfersJanuary 1. Restrictions on payments for invisible transactions and current transfers were eliminated.
January 1. The requirement of prior authorization for the remittance of interest, profits, and dividends was eliminated.
January 1. Restrictions on payments of reinsurance were eliminated.
Capital transactions
Controls on capital transactionsJanuary 2. Repayment of the principal on nonfinancial private sector debts no longer required BCRA prior approval, provided that the amount paid by the original financial debtor did not exceed a monthly equivalent of US$150,000. (This ceiling was raised to US$300,000 on February 13, 2003, and to US$1 million on March 13, 2003.)
February 13. The prior approval requirement for servicing of nonfinancial private sector debts was abolished, provided that servicing related to financial debts did not exceed the equivalent of US$1 million (this ceiling was raised to US$3 million on March 13, 2003, and to US$5 million on March 27, 2003).
May 6. BCRA prior approval was no longer required for payments for servicing nonfinancial and financial private sector debts, except for those liabilities under refinancing schemes arranged with the BCRA.
Controls on capital and money market instrumentsMarch 27. The monthly limit on foreign exchange purchases for financial investment abroad without prior BCRA approval was raised to the equivalent of US$300,000 from US$200,000.
December 31. The monthly limit on foreign exchange purchases for financial investment abroad without prior BCRA approval was raised to the equivalent of US$500,000 from US$300,000.
Controls on credit operationsJanuary 2. The monthly ceiling on purchases of foreign exchange by residents to nonresidents for extension of financial credits without BCRA approval was increased to the equivalent of US$150,000 from US$100,000.
March 13. The monthly ceiling on purchases of foreign exchange by residents to nonresidents for extension of financial credits without BCRA approval was increased to the equivalent of US$200,000 from US$150,000.
March 27. The monthly ceiling on purchases of foreign exchange by residents to nonresidents for extension of financial credits without BCRA approval was increased to the equivalent of US$300,000 from US$200,000.
May 6. The monthly ceiling on purchases of foreign exchange by residents to nonresidents for extension of financial credits without BCRA approval was increased to the equivalent of US$500,000 from US$300,000.
June 30. The minimum maturity requirement for new external borrowing from nonresidents to residents was increased to 180 days from 90 days.
Controls on direct investmentDecember 31. Repatriation of inward direct investments by nonresidents was subject to a monthly limit of US$5,000 or the equivalent on sales of foreign exchange to nonresidents.
Provisions specific to commercial banks and other credit institutionsJanuary 23. The limits on banks’ U.S. dollar exposure was raised to 8% from 6% of a bank’s net worth.
February 13. The limit on the overall foreign exchange position of financial institutions was set at 10% of regulatory capital outstanding at end-November 2001 or the equivalent of US$1 million, whichever is larger.
May 1. The overall net position in foreign exchange of financial institutions (as a monthly average of daily balances converted to pesos at the reference exchange rate) was not allowed to exceed 30% of the net liabilities of the preceding month.



June 26. The limit on banks’ U.S. dollar exposure was raised to 10% from 8% of a bank’s net worth.

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