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Restrictions On Access To FX Market For Importers

ARGENTINA

According to an emailed statement, Argentina's central bank announced restrictions on access to the official foreign exchange market for importers of luxury goods. This will result in purchases having to be funded abroad.


Luxury good importers will not be able to access the formal FX market for 365 days after product clears through Argentine customs.

  • Importers of these goods must obtain financing before accessing the official FX market to make payments.

There have also been some changes to the rules around FX purchases for corporate debt service payments. Companies will now be able to buy foreign currencies up to 45 days in advance of maturing debt, extending the prior 30-day window set in October. From April, new debt issuance will also be allowed to be used to extend previous debt maturities by at least 18 months.


These developments highlight the ongoing strains in Argentina's domestic FX market that do not appear likely to ease any time soon.

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