BUENOS AIRES -- The Argentina Central Bank has eased part of its foreign exchange regulation to firms.
Companies will now have 270 days, rather than 180 days previously, to sell to the Central Bank the funds obtained through debt issuance, international financing, or other sources of foreign currency.
In addition, firms will no longer be required to immediately liquidate the 10% of the funds captured abroad.
According to the Central Bank, this change in the regulation was possible thanks to a stabilization of the FX spot and futures market, and an improved international reserve position.
Experts believe that the change should not have a direct effect in Argentina’s exchange rate since it only applies to a small subset of companies in the country.