Untying the Gordian knot: Progressive liberalization of foreign exchange controls in Argentina

The total liberalization of foreign exchange controls in Argentina remains a pending issue on the agenda of the Executive Branch and the Central Bank of Argentina. However, significant steps have already been taken to achieve a position where it is no longer necessary to carry out extensive procedures to remit or receive foreign currency.

The local banking sector is also making efforts in relation to the levels of banking regulations to simplify local banking transactions. It is also expected that the recent approval of the Fiscal Amnesty Law in Argentina will generate a substantial flow of foreign currency for the Argentine banks for which, the liberalization of currency exchange controls would be ideal for this purpose.

Recently, the Central Bank of Argentina issued a formal communication abolishing regulatory restrictions on the purchase and sale of foreign currency, allowing greater flexibility in foreign currency transactions.

The following article briefly reviews the most significant changes made in this Communication, showing how the Federal Government has kept its promise to create a more flexible foreign exchange market with the ultimate objective of attracting, facilitating and increasing foreign investment in Argentina.

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For more information on foreign exchange controls in Argentina and how it might affect investments in the country, you can contact our members RCTZZ Abogados.