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In brief

On 11 May 2023, the Argentine Central Bank issued Communication “A” 7766 extending the limitations for legal entities requesting access to the local foreign exchange market when entering certain transactions with any related company or company belonging to the same economic group.


In focus

On 11 May 2023, the Central Bank of Argentina (BCRA) issued Communication “A” 7766 (“Communication“) extending the limitations for legal entities requesting access to the local foreign exchange market (MLC) when entering certain transactions with any company related or belonging to the same economic group. In this regard, the Communication establishes that in order to access the MLC, legal entities must, among other requirements:

i. Submit a list of the individuals or legal entities that exercise direct control over them and of other legal entities with which they form part of the same economic group.

ii. Submit a sworn statement in which they state that on the day they request access to the MLC and in the 180 days prior to that date, they have not delivered in the country any funds in local currency or other liquid local assets — except funds in foreign currency deposited in local financial entities — to any controlling company or to other companies with which they form part of the same economic group.

The Communication entered into force on 12 May 2023.

Click here to read the Spanish version.

Author

Francisco José Fernández Rostello is a partner and member of the Firm’s Banking & Finance Practice Group in Buenos Aires. He has worked for the International Swaps and Derivatives Association and for Société Générale, New York Branch. He is knowledgeable on matters related to issuance of debt, derivatives transactions, local and cross-border financing, and securities transactions.

Author

Gabriel Gomez-Giglio is partner at Baker McKenzie’s Buenos Aires office, chair of the Latin America Banking & Finance Practice of Baker McKenzie and a member of the Global Steering Committee of the Firm’s Financial Institutions Industry Group. He advises clients on a variety of general commercial issues. His practice focuses on the areas of transactional and regulatory matters, including but not limited to multinational financial transactions, commercial agreements and mergers and acquisitions. Gabriel is a member of the Board and Adjunct Professor of Law at Universidad Torcuato Di Tella and a visiting professor with the Centre for Commercial Law Studies, Queen Mary College, University of London.

Author

Juana Allende is an Attorney at Law in Baker McKenzie, Buenos Aires office.

Author

Jeronimo Argonz is an Attorney at law in Baker McKenzie, Buenos Aires office.

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