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Argentina: Foreign exchange deregulation continues — repatriation of nonresident investments

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In brief

The Central Bank of the Argentine Republic continues its policy of foreign exchange deregulation. This time, through Communication “A” 8230, changes are introduced to the regime for the payment of financial debts with related companies, the repatriation of nonresident investments, and the reduction of minimum holding periods for certain financial investments.

In focus

  • The requirement for prior approval to access the foreign exchange market is eliminated for the following:
  1. Payment of principal on financial debts with related companies.
  2. Repatriation of direct investments by nonresidents in companies that are not controlling local financial entities.
  3. Repatriation by nonresidents of capital services, income and proceeds from the sale of portfolio investments in instruments listed on authorized local markets.

Generally, in all three cases, it is required (among other conditions) that the debt or investment respect a minimum holding period of at least 180 days and that the funds be entered and settled from 21 April 2025 onward.

  • Lastly, the minimum holding period for the payment of principal on debt securities issued from 8 November 2024 is reduced from 365 days to 180 days.

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Click here to read the Spanish version.

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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

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.

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