Foreign Exchange and the Argentine Central Bank

Companies are often driven to request access to the foreign echange market (MLC) motivated by multiple reasons, such as commercial, services, imports, financing, payment of dividends, payment of royalties, refinancing of past debts or other scenarios. There are then, multiple variables that reasonably justify access to the MLC or legitimately seek to safeguard their assets in foreign currency securities in order to repay a debt or operation in said currency in the future.

On the financial front, based on the new Communiqué A 7552, the demand could lead to securities that have a dollar-linked clause or negotiable obligations of companies, or the search for assets linked to the exit of the peso. In this context, too, the judicial route is presented as a possible option in terms of access to the MLC for payment of debts abroad or for imports, when the principles of legality, equality, fairness, proportionality and non-confiscation prescribed in our law are affected.

This analysis becomes necessary, when in contrast to the needs of the private sector, it is feasible that the needs of foreign exchange public policy and preservation of the official value of the peso will persist in the following months. Thus, possible tensions are anticipated in exchange matters due to possible increases in the limitations to access the MLC, which private agents must analyze in order to moderate the impact on their operations.