Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

ARGENTINA

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of May 31, 2007)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: May 14, 1968.
Exchange Measures
Restrictions and/or multiple currency practicesInformation is not publicly available.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Effective June 23, 2006, Argentina notified the IMF that it maintains restrictions in accordance with UN Security Council resolutions and European Council regulations, on the prevention of the financing of terrorism.
Other security restrictionsThe Central Bank of the Argentine Republic (BCRA) has instituted a system for enforcing sanctions of this type, whereby financial and exchange institutions are required, in accordance with decrees issued by the Argentine executive branch pertaining to UN Security Council decisions on combating terrorism, to abide by the resolutions (and annexes thereto) issued by the Ministry of External Relations, International Trade, and Religious Affairs, once they are published in the Boletín Oficial.
References to legal instruments and hyperlinksConsolidated regulation on prevention of financing terrorism (Communications A 4218 4273, 4273, 4342, 4384, 4425, 4459, 4521, 4548, and 4599, and C 40646).
The aforementioned provisions (in Spanish) are available at the institutional website of the CB (www.bcra.gov.ar) by searching for “normativa” and “textos ordenados” or “comunicaciones,” as applicable.
Exchange Arrangement
CurrencyThe currency of Argentina is the Argentine peso.
Exchange rate structure
DualAll foreign exchange transactions must take place in the free and unified foreign exchange market (MULC), according to Decree 260/2002, Communication A 3471.
Beginning July 17, 2006, the exchange rate structure became dual as a result of a measure that exporters who failed to surrender their export proceeds within the prescribed period of time surrender the proceeds to the BCRA at the reference rate on the date of surrender or the reference rate on the day the surrender should have taken place, whichever is less favorable. Effective May 17, 2007, the measure was suspended.
Classification
Conventional pegged arrangementGenerally, the exchange rate of the Argentine peso is determined in the free and unified foreign exchange market (MULC) as a result of the free interplay of supply and demand. However, effective June 1, 2006, reflecting the stability of the peso exchange rate owing to the BCRA interventions, the de facto exchange rate arrangement of Argentina was reclassified as a conventional pegged arrangement from managed floating with no predetermined path for the exchange rate.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketThere are three forward markets; transactions in these markets are settled by netting in domestic currency.
References to legal instruments and hyperlinksCommunication A 3471; Decree 260/2002; www.bcra.gov.ar.
Arrangements for Payments and Receipts
Prescription of currency requirementsTransactions must be settled in freely convertible currencies.
Payments arrangements
Bilateral payments arrangements
InoperativeArgentina has agreements with Cuba, Malaysia, and the Russian Federation. Payments between Argentina and these countries are settled on a voluntary basis through accounts opened at the BCRA and the other CBs concerned, with the exception of Cuba, for which 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.
Payments arrearsThere have been no exchange restrictions on the payment of financial debts abroad since May 6, 2003 (Communication A 3944).
OfficialYes.
Controls on trade in gold (coins and/or bullion)
On domestic ownership and/or tradeSales of gold coins or bullion are subject to MULC exchange regulations.
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. Exports of coins and precious metal coins exceeding US$10,000 require BCRA approval and must be made through entities subject to supervision by the Superintendency of Financial and Exchange Entities.
Controls on exports and imports of banknotes
On exports
Foreign currencyExports of foreign currency exceeding US$10,000 require prior BCRA authorization and must be made through entities subject to supervision by the Superintendency of Financial and Exchange Entities.
On imports
Domestic currencyImports of domestic currency through outward transfers of foreign exchange are subject to BCRA approval if the amount exceeds US$5,000 a calendar month.
Foreign currencyThe only limitation relates to the nature of the transaction counterpart.
References to legal instruments and hyperlinksCommunication A 3661; Communication A 3826; Communication A 3940; Communication A 3944; www.bcra.gov.ar.
Resident Accounts
Foreign exchange accounts permittedAuthorized banks may open time deposit accounts in dollars and euros. Authorized banks may open deposit accounts in foreign currencies other than dollars 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 must be met (among other things, to prevent money laundering).
Held domesticallyYes.
Approval requiredAuthorized banks may open deposit accounts in foreign currencies other than dollars with BCRA approval.
Held abroadYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyNo.
References to legal instruments and hyperlinksn.a.
Nonresident Accounts
Foreign exchange accounts permittedThe regulations governing resident accounts apply.
Domestic currency accountsYes.
Convertible into foreign currencyNo.
Blocked accountsNo.
References to legal instruments and hyperlinksn.a.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for imports
Advance payment requirementsAdvance payment for import of goods is permitted; however, there must be evidence that the goods have entered the national economy within 365 days of the advance payment or within 90 days of the spot payment (A 4605).
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measuresNonautomatic import licenses are required for paper products, toys, washing machines, footwear, carpets, bicycles, motorcycles, refrigerators, and stoves.
Negative listRestrictions are in effect for security, hygiene, or 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 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 by 2006 for a list of computer and telecommunications products. The national list of exceptions, in accordance with Decision 38/05, now covers 100 products, with a maximum tariff of 35%.
State import monopolyNo.
References to legal instruments and hyperlinksCommunication A 4605; www.bcra.gov.ar.
Exports and Export Proceeds
Repatriation requirementsYes.
Surrender requirements
Surrender to the central bankEffective May 17, 2007, the requirement that exporters who failed to surrender their export proceeds within the prescribed period of time surrender the proceeds to the BCRA at the reference rate on the date of surrender or the reference rate on the day the surrender should have taken place, whichever was less favorable, was suspended.
Surrender to authorized dealersExport proceeds must be surrendered within certain time periods outlined in the MULC (A 3473, A 4361, and A 4404). Exceptions apply to hydrocarbon exports (Decree 2703/2002) and minerals (Decree 417/2003).
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, for which an export duty of 25% applies. However, this duty is subject to a surcharge based on the international price of oil.
References to legal instruments and hyperlinksCommunication A 3473; Communication A 3608; Communication A 3978; Communication A 3990; Communication A 4361; Communication A 4404; Communication A 4415; Communication A 4420; Communication A 4443; Communication A 3500; Decree 2703/2002; Decree 417/2003; www.bcra.gov.ar.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Surrender requirements
Surrender to the central bankEffective May 17, 2007, the requirement that exporters who failed to surrender their export proceeds within the prescribed period of time surrender the proceeds to the BCRA at the reference rate on the date of surrender or the reference rate on the day the surrender should have taken place, whichever was less favorable, was suspended.
Surrender to authorized dealersAll foreign currency proceeds received for exports of services are required to be sold in the MULC, net of withheld amounts or discounts made abroad by the customer, within 135 business days of receipt (Communications A 3473 and A 4361).
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksCommunication A 3473; Communication A 3608; Communication A 4361; www.bcra.gov.ar.
Capital Transactions
Controls on capital transactionsCapital inflows are required to be sold in the MULC if the foreign exchange is from financial debt operations of the nonfinancial private sector and the financial sector.
A minimum retention period must be agreed on and the foreign exchange must be held for a minimum of 365 consecutive days.
New financial debt entering the local foreign exchange market and extensions of foreign debt by the resident financial sector and nonfinancial private sector entities (with the exception of primary issues of debt securities in public offerings) must be listed on self-regulated markets (Decree 616/05—Communication A 4359).
Unremunerated foreign currency deposits must be placed in local financial institutions in dollars and must cover 30% of the operation (the list of items is included in Communications A 4359, A 4377, and B 8599). Exceptions have been established by Communications A 4359, A 4377, A 4386, A 4427, A 4447, A 4507, A 4554, A 4574, B 8814, C 42303, C 42884, C 43075, C 44048, C 44670, and C 46394. The above legal documents give detailed rules of the provisions adopted through Decree 616/05, Ministry of Economy and Production Resolutions 365/05, 637/05, and 731/06.
As for outflows, resident individuals and legal entities not included in the financial sector may access the MULC, subject to monthly caps, to purchase foreign exchange for the following purposes: real estate investments abroad, loans to nonresidents, direct investment abroad by residents, portfolio investments abroad by individuals, other investments abroad by residents, portfolio investments abroad by legal entities, purchases of foreign banknotes for domestic holdings, and purchases of traveler’s checks, portfolio investments in mutual funds, banknotes from mutual funds, and grants (Communication A 4306).
The monthly ceiling across all financial institutions is currently US$2 million, which may be greater if the peso amount paid by customers to purchase foreign exchange for these various transactions does not exceed the peso equivalent of the sum of export duty payments plus three times the taxes on bank current account credits and debits paid by taxpayers to the Federal Public Revenue Administration during the second to last calendar month before the reporting month (Communication A 4128).
The MULC may be accessed under these rules and limits only if, on the date of access, there are no overdue foreign obligations pending for debt service of any kind. This condition is not applicable to purchases of banknotes and traveler’s checks in amounts not exceeding the equivalent of US$10,000 a calendar month (Communication A 4349).
These limits are waived for purchases of foreign assets for (1) cancellation of debts within 360 days of accessing the MULC (Communications A 4178 and A 4307), and (2) resident individuals and legal entities not included in the financial sector, provided the funds acquired over the above limits are used to underwrite primary issues of public securities by the national government in foreign currency.
The regulations for financial debt include Communication A 4177 and supplementary communication 4359; and financial derivatives Communication A 4285 and supplementary communications.
Sales of foreign exchange to nonresidents require prior BCRA approval if the amount exceeds US$5,000 a calendar month except for (1) international organizations and official lending agencies, (2) income received within the country from current operations, (3) sale or liquidation of foreign direct investment in the nonfinancial private sector (within the limits established in Communication A 4129), and (4) portfolio investment inflows (within the limits established in Communication A 4129).
Repatriation requirementsYes.
Surrender requirements
Surrender to authorized dealersForeign exchange proceeds from private sector external debt must be surrendered in the MULC within one year.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsA 30% unremunerated deposit requirement (URR) over a year applies, in accordance with Decree 616/2005.
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 are periodically required to submit to the corresponding authority in their jurisdiction of origin.
Issuers of public offerings of securities domestically and abroad must submit (in Spanish) to the CNV the same information required by the entities authorizing the public offering and listing abroad.
Purchase abroad by residentsYes.
Bonds or other debt securities
Purchase locally by nonresidentsA 30% URR over a year applies, in accordance with Decree 616/2005.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsForeign exchange proceeds of issues abroad must be surrendered within one year (Communication A 3820). A minimum maturity requirement of 365 days also applies (except for primary issues of debt securities that are publicly offered and listed on self-regulated markets—Communication A 4359).
On money market instrumentsThe regulations governing bonds or other debt securities apply. In accordance with Communication A 4359, the only foreign borrowing operations with a maturity shorter than a year that may be carried out are primary issues of debt securities that are publicly offered and listed on self-regulated markets.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsForeign exchange proceeds of issues abroad must be surrendered (Communication A 3820).
On collective investment securitiesThe regulations governing bonds or other debt securities apply.
Sale or issue locally by nonresidentsApproval by the CNV is required for public offerings.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsForeign exchange proceeds of issues abroad must be surrendered (Communication A 3820).
Controls on derivatives and other instrumentsThere are no limits on private financial and nonfinancial sector arrangements within the country related to operations involving futures in regulated markets and forward transactions, provided they are settled domestically by netting in domestic currency. Also, there are no limits on the following foreign transactions mentioned in Communication A 4285: (1) purchases of options to hedge variable-yield term deposits that comply with the requirements and modalities stated in point 2.5 of the rules on term deposits and investments, once they meet the approval requirement in point 2.5.3 of these rules; (2) foreign exchange hedging contracts by financial institutions to cover their own long positions in the general exchange position; (3) foreign exchange and interest rate hedging contracts by financial institutions and the nonfinancial private sector to cover foreign liabilities declared and validated in accordance with Communication A 3602 and related provisions; (4) commodity price hedging contracts by local exporters and/or importers providing coverage exclusively for Argentine foreign trade operations; (5) external financing transactions in the form of repos, provided they are arranged at the minimum terms applicable on the date of their negotiation—the minimum maturity for such transactions is 365 days; and (6) hedge contracts between foreign currencies by exporters to cover the risk of shipments pending payment.
The operations carried out with the rest of the world through the exchange market, to cover the transactions listed in points 1-6 above, may be executed only as follows: (1) in institutionalized markets in international financial centers; (2) with foreign banks that meet the requirements set out in point b of Communication A 3661 and relevant provisions; and (3) with financial institutions authorized under the regulations for this type of operation, if they are controlled by banks that meet the requirements in the preceding point.
Access to the foreign exchange market for the remaining futures, forward options, and other derivatives transactions and their subsequent payment is subject to BCRA approval.
One condition for accessing the MULC to pay premiums and/or establish the guarantee margins required in hedging contracts between foreign currencies, interest rates, and commodity prices is that the entity must join the MULC and sell, within five business days following the close of the operation, the proceeds earned by the domestic customer from such operations or from the release of the established guarantees.
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsApproval by the CNV is required for public offerings.
Purchase abroad by residentsYes.
Controls on credit operations
Financial credits
By residents to nonresidentsYes.
To residents from nonresidentsBorrowing is allowed with a 365-day minimum indebtedness period. The incoming foreign exchange must be surrendered. If applicable, a nontransferable URR must be established covering 30% of the amount settled (Decree 616/05; Communication A 4359).
Controls on direct investment
Inward direct investmentThe deposit and minimum retention time requirements do not apply to foreign exchange imported by nonresidents for direct investment in the country. Foreign exchange imported for direct investment covers only those amounts that nonresidents apply to direct investment in the country, and the amounts they use specifically to purchase domestic assets that qualify as direct investment, in accordance with internationally accepted international accounting terms, provided the importing institution can certify that the funds were specifically used in such transactions, based on its documentation.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
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.
Controls on personal capital transactionsThe rules governing legal entities apply.
Loans
By residents to nonresidentsYes.
To residents from nonresidentsBorrowing is allowed with a 365-day minimum indebtedness period. The incoming foreign exchange must be surrendered. If applicable, a nontransferable URR must be established covering 30% of the amount settled (Decree 616/05; Communication A 4359).
References to legal instruments and hyperlinksCommunications A 3602, 3712, 3820, 4129, 4177, 4285, 4359, 4377, 4386, 4427, and 4447; Communication A 4507; Communication A 4574; Communications B 8599 and 8814; Communications C 42203, 42884, 43075, 44048, 46670, and 46394; www.bcra.gov.ar.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutions
Borrowing abroadThe regulations governing the nonfinancial sector apply.
Lending to nonresidents (financial or commercial credits)Credits granted by financial intermediaries must be used in the country and must finance investment, production, commercialization, or consumption of goods and services for internal consumption or export.
Lending locally in foreign exchangeRegulations on the allocation of funds in foreign currencies establish that under certain conditions lending capacity from foreign currency deposits must be applied to any one of the following: (1) prefinancing and financing of exports to be made directly or through principals, trustees, or other brokers; (2) financing of investment projects, working capital, or goods that increase the value of or are related to the production of goods to be exported; (3) financing to manufacturers of goods to be exported, as final products or as part of other goods, by third party purchasers, provided such transactions are secured or collateralized in foreign currency by the third party purchasers; (4) financing to commercial borrowers importing capital goods that increase the production of goods to be sold domestically. Borrowers should show a capacity to withstand an exchange rate depreciation in at least two scenarios; (5) debt securities or financial trust participation certificates whose underlying assets are loans made by the above-mentioned financial entities; (6) loans made from one financial entity to another; and (7) foreign currency debt securities or financial trust participation certificates, publicly listed under an authorization by the National Securities Commission, whose underlying assets are securities bought by the fiduciary and guaranteed by reciprocal guarantee companies, in order to finance export transactions.
Lending capacity surpluses (exceeding the above-mentioned designations) produce an additional cash requirement in that currency to be held in cash or as deposits with the BCRA.
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 requirementsDemand deposits are subject to a cash requirement of 19% or 30%, depending on whether they are denominated in pesos or in foreign currency, respectively. Fixed-term deposits are subject to a differential requirement, depending on the deposit currency, that decreases according to the residual maturity.
Investment regulations
Abroad by banksTransactions are prohibited by policies on general lending.
Open foreign exchange position limitsThe overall foreign exchange position of financial institutions is made up of all the institution’s liquid foreign assets; namely, gold coins and bullion, foreign currency notes, demand deposits in banks abroad, investments in foreign public securities issued by OECD member countries with a sovereign debt rating of at least AA, and banking correspondents’ debit and credit balances. Also included are agreed purchases and sales of such assets pending settlement through exchange transactions with customers at terms of no more than 48 hours.
The upper limit of the overall foreign exchange position is recalculated monthly and the update takes effect on the first business day of each month. The limit on banks’ dollar exposure is 15% of a bank’s net worth (responsabilidad patrimonial computable-–RPC) and the upper limit of the overall foreign exchange position is set at 15% at the end of the second to last month preceding the month of the deadline for submission of the foreign exchange to the BCRA, under the rules of the corresponding reporting regime. It is increased by 5% of the institution’s turnover of foreign exchange purchases and sales to customers in the second to last preceding calendar month, and by 2% of total demand and term deposits established and payable domestically in foreign exchange, excluding deposits held in custody, reported by the institution at the close of the second to last preceding calendar month. If the maximum calculated is less than US$5 million, this latter amount will be considered the lower limit of the established maximum. This lower limit will be increased by US$7 million when the financial institution in question deals in foreign exchange and operates at 15 or more locations. In addition, and cumulatively, it is increased by a maximum of the equivalent of US$2 million for holdings of banknotes in foreign currencies other than the U.S. dollar and the euro; up to a maximum of US$1 million for checks drawn on foreign banks purchased from third parties and not yet credited to the correspondent accounts; and by up to a maximum of the equivalent of US$3 million for the balances of dollar or euro banknotes remitted to the U.S. Federal Reserve or the European Central Bank that are still pending deposit 72 hours after their shipment (Communications A 3645, 4347, and 4552).
The negative 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 worth (RPC) of the preceding month.
Excesses are subject to a charge of up to the equivalent of twice the accrued nominal annual interest rate resulting from auctions of BCRA instruments in dollars or twice the 30-day LIBOR for operations in dollars, as reported for the last working day of the relevant month, whichever is greater. The overall net position in foreign exchange includes total assets and liabilities from financial intermediation in foreign currency and in foreign currency securities (spot and forward transactions), including derivative contracts related to these items, items recorded in the foreign exchange position, deposits in such currency in accounts held at the BCRA, as well as gold holdings and BCRA bills in dollars. Also included are forward operations entered into under master agreements within self-regulated markets in the country under the cash settlement system, without physical delivery of the underlying asset.
The position in currencies other than dollars is expressed in the relevant currency by applying the exchange rate published by the BCRA.
This list excludes assets that are deductible for purposes of determining net worth (RPC).
Provisions specific to institutional investorsThe regulations governing the nonfinancial private sector apply.
Insurance companies
Limits (max.) on securities issued by nonresidentsThe limit is the greater of 50% of the capital requirement or 50% of net commitments. The Superintendency of Insurance (SSN) may approve exceptions to this limit (Point 35.4 of the Insurance Sector General Regulations—SSN Resolution 29,211).
Limits (max.) on investment portfolio held abroadThe limit is the greater of 50% of the capital requirement or 50% of net commitments. The SSN may approve exceptions to this limit (Point 35.4 of the Insurance Sector General Regulations—SSN Resolution 29,211).
Limits (min.) on investment portfolio held locallyThis limit depends directly on the parameters established in the previous point.
Currency-matching regulations on assets/liabilities compositionInsurers with liabilities derived from insurance and reinsurance contracts payable in foreign currency are required to establish appropriate technical reserves in the same currencies or other allowed currencies, as determined by the supervisory authorities (Law 20.091, Article 33).
Pension funds
Limits (max.) on securities issued by nonresidentsSecurities issued by nonresidents are subject to a limit of 25% of the total series of liabilities constituted through the issue or 2.5% of the total resources managed by the pension fund.
Limits (max.) on investment portfolio held abroadThe share of foreign instruments in the investment portfolio may not exceed 10% of the total resources managed by the pension fund.
Limits (min.) on investment portfolio held locallyA 5% limit applies to eligible funds for investment in debt securities, financial trust participation certificates, and assets or other debt securities for the purpose of financing medium- and long-term production or infrastructure projects in Argentina.
Currency-matching regulations on assets/liabilities compositionThere are no regulations because the system operates on a defined contribution basis, which does not create an asset-liability mismatch.
Investment firms and collective investment fundsEffective December 9, 2006, Resolution 731 of the Ministry of Economy and Production eliminated the 30% one-year required reserves when issuing trust securities in the primary market for infrastructure projects, as established in Decree 616/05.
Limits (max.) on securities issued by nonresidentsThere is a 25% limit on investment for mutual fund portfolios in securities that are publicly offered outside the purview of the CNV, but this limit does not apply to MERCOSUR countries and Chile.
Limits (max.) on investment portfolio held abroadThere is a 25% limit on securities issued abroad (with the exception of MERCOSUR countries and Chile, which are considered local issues). If a subsidiary of a nonresident issues securities and requests authorization from the CNV to offer them publicly, the issue is considered local because the issue principle applies.
Limits (min.) on investment portfolio held locallyWhen a mutual fund consists of negotiable 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.
References to legal instruments and hyperlinksCommunications A 3645, 4347, and 4552; www.bcra.gov.ar.
Changes during 2006
Exchange measuresJune 23. Argentina notified the IMF that restrictions had been imposed in accordance with UN Security Council resolutions and European Council regulations, on the prevention of financing terrorism.
Exchange arrangementJune 1. The exchange arrangement was reclassified to the category conventional pegged arrangement from the category managed floating with no predetermined path for the exchange rate.
July 17. The exchange rate structure was reclassified to dual from unitary as a result of a measure that applied different exchange rate for surrender of foreign exchange proceeds after the due date.
Provisions specific to the financial sector
Provisions specific to institutional investorsDecember 9. Resolution 731 of the Ministry of Economy and Production eliminated the 30% one-year required reserves when issuing trust securities in the primary market for infrastructure projects, as established in Decree 616/05.
Changes during 2007
Exchange arrangementMay 17. The requirement that exporters who failed to surrender their export proceeds within the prescribed period of time surrender the proceeds to the BCRA at the reference rate on the date of surrender or the reference rate on the day the surrender should have taken place, whichever was less favorable, was suspended.
Exports and export proceedsMay 17. The requirement that exporters who failed to surrender their export proceeds within the prescribed period of time surrender the proceeds to the BCRA at the reference rate on the date of surrender or the reference rate on the day the surrender should have taken place, whichever was less favorable, was suspended.
Proceeds from invisible transactions and current transfersMay 17. The requirement that exporters who failed to surrender their export proceeds within the prescribed period of time surrender the proceeds to the BCRA at the reference rate on the date of surrender or the reference rate on the day the surrender should have taken place, whichever was less favorable, was suspended.

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