LatinNews Daily - 24 July 2024

*Argentina’s central bank (BCRA) has announced it has taken “a new step in the process of removing and relaxing regulations on access to the foreign exchange market, with the ultimate goal of completely eliminating restrictions”. This includes a relaxation of import payment terms, shortening the timeframe within which companies accessing the free foreign exchange market have to pay for imports. As of 1 August, luxury goods and car importers will have 90 days to make the payment from the registration of their customs entry, down from 120 days, while other products can be paid for in two instalments, one after 30 days and the second after 60. This is down from a four-part instalment scheme after 30, 60, 90, and 120 days. The BCRA states that this measure will allow importing companies to face less financial burden and prevent those companies that did not obtain commercial financing from their suppliers to pay for imports through the parallel exchange market. A second measure increases the amount that service exporters do not have to liquidate in the free foreign exchange market. Service exporters will now be able to collect up to US$24,000 per calendar year in their local accounts in dollars, without the obligation to settle them in the free foreign exchange market, up from US$12,000. The third measure removes the restrictions to access to the MEP and CCL dollars (used for debt repayments) for those individuals who received some assistance from the State during the coronavirus (Covid-19) pandemic or who have a consumption subsidy for public services. With this measure, all those who were included in this category will be able to subscribe mortgage loans in pesos and access the MEP dollar to carry out their real estate transactions.