Through Communication “A” 6037, the Argentine Central Bank (“ACB”) set a new ordering scheme aiming to simplify the access to the Argentine Foreign Exchange Market (”AFEM”) and eliminate certain bureaucratic requirements.

Through the abovementioned Communication, the ACB restated some of the recent amendments made to the AFEM in a single regulatory body, and repealed certain regulations that set limitations to acquire foreign currency.

Below we highlighted the most important measures set by Communication “A” 6037:

1. Reduction of paperwork involved
As from August 9, 2016, all the transactions in foreign currency with financial entities will be done automatically.
The client will have only to specify -through an affidavit- the concept under which he is acquiring or selling the foreign currency, among other basic information.

2. Elimination of the caps on currency conversion
Until today, the ACB had imposed a limitation of USD 5 millions per day to operate in the AFEM.
Communication “A” 6037 eliminates this restriction, being only applicable the limitations regarding the use of cash established as part of the anti money laundry policy.

3. Modification of the nomenclature regarding the concepts under which the foreign currency negotiation must be done
In this sense, the abovementioned Communication reduces the categories of foreign exchange transactions that must be reported to the government from 315 to 70
The new nomenclature will be available in early September.

4. Repeals Communication “A” 4805.
It is noted that said Communication amended the rules on derivatives transaction agreements and terminations executed inside or outside Argentina.

5. Allows online banking, and allows Exchange Bureaus to freely choose the schedule to operate.

To see Communication “A” 6037 (in Spanish), please click here