He Central Bank (BCRA) accelerated the flexibility of the exchange rate with a package of measures that impacts companies, exporters and tourists. The decision comes after 100 days of sustained purchase of reservesin which the monetary authority accumulated US$4,964 million.
This Thursday alone, the BCRA bought US$281 million. That pace puts him close to meeting thehalfway to the minimum goal of US$10 billion committed for the entire yearwhich gives it room to move forward with new exchange freedoms.
The proximity of the beginning of the high agricultural liquidation season also weighs on the decision. With that cushion, Santiago Bausili approved changes that affect three key areas: exports, financial operations of companies and tourism.
The rule that enables these modifications is Communication “A” 8417. It consists of three pages and was published after the approval of the BCRA board of directors.
End of the limit for dollar withdrawals with a card abroad
One of the most visible measures, which will impact those people who travel abroad, is the elimination of the limit for withdrawals at foreign ATMs with credit card. Until now, the limit was US$50 for neighboring countries and US$200 for the rest of the world.
Now, each bank will define its own limit. The BCRA considers that this decision will not put pressure on the demand for foreign currency, since it is an expensive operation that Argentines resort to only in emergencies.
For each extraction there is a charge commissions between US$14 and US$19plus cash advance interest. Added to this is the conversion at the official exchange rate and taxes if it is not paid with foreign currency.
More time and flexibility to settle currencies
The BCRA extended the deadlines for the entry of foreign currency into the country. The objective is to match the income and settlement periods with the real times of each business, without forcing difficulties that previously generated distortions.
The most important change: the entry period goes from 60 to 180 days. In addition, the limit is raised in the case of exports that companies with local headquarters make to their subsidiaries abroad.
That stop jumps from US$50 million to US$200 million annually. The measure aims to facilitate operations for economic groups with regional presence.
The deadlines for exports of clothing, handbags and similar low-volume products are also extended from six months to one year. The same for shipments of space or nuclear products made by Argentine companies.
There is another key novelty for small exporters. Human persons who export goods They are released from the obligation to liquidate foreign currency in the country, although they must enter it.
It is an extension of the criterion that has been in force for almost a year for the export of services. Artisans and goldsmiths who sell abroad will be able to keep the dollars generated by those sales.
Companies with debt: new access to the official market
The BCRA equated the treatment for companies that They issued debt through negotiable obligations (ON) or took commercial lines. Until now, they could only access the market to buy dollars and pay up to three days before if it was foreign debt.
With the new scheme, they will also be able to do so with internal debt of this type. The measure reduces pressure on companies that need to meet hard currency maturities.
Another flexibility allows the access to the official exchange market for capital payments of intrafirm financial debt, which were still restricted. The condition: obtain a refinancing with four years of average life and three years of grace for the capital.
These terms and conditions are similar to those provided for the repatriation of non-resident capital after the sale of assets or local companies, as explained by the BCRA.
In addition, the taking of exchange hedging for external liabilities is facilitated. For example, if a company took on liabilities in yuan, it could not access the market to cover them in dollars; Now you will be able to do so, which reduces the exchange rate risk.
Fight a new financial “roller”
The battery of relaxations came accompanied by an additional restriction. The BCRA expanded the crossed lock that prevents access to the official market for 90 days to those who have operated financial dollars to transfer them abroad.
The measure aims to stop a growing “roll” carried out by highly professional investors, even from some banks. The scheme was simple but effective in capturing price differences.
These operators bought dollars in the local market (today, around $1,405), transferred them to accounts abroad and then returned them via cash with settlement (at $1,479 on average). That $74 gap generated a quick profit with no risk.
The BCRA considers that this operation distorts the market and artificially puts pressure on prices. For this reason, he toughened the conditions for those who try to repeat the scheme.
With these measures, the exchange rate trap takes a new step towards its gradual dismantling. ANDThe BCRA maintains control over the flow of foreign currencybut expands the margins of freedom for companies and people.
