27 Jul 22 BCRA regulatory news
On July 26, 2022, the Argentine Central Bank («BCRA», for its acronym in Spanish) issued Communication «A» 7555 regarding put option transactions on National Government securities and Communication «A» 7556 which introduced new foreign exchange regulations.
In this sense, by means of Communication «A» 7555, the BCRA provides that it may make new put option bids on securities issued by the National Government as from July of this year.
Put option contracts on National Government securities awarded as from July 22, 2022 may be exercised from 5 business days after the settlement of the security until its termination, which will be up to 15 days before the maturity of the collateral.
In order to acquire the options, participants will make bids on the announced premium in pesos during the during the bidding period.
Likewise, the BCRA will establish the cutoff and they will be awarded through the Dutch system, multiple price or fixed price quantity to the corresponding financial institutions.
In addition, in the bidding process the BCRA will specify the details regarding the species involved, settlement terms, amounts, schedules and other particularities.
On the other hand, through Communication «A» 7556, the BCRA establishes that Argentine residents who are grain producers and/or operators in their commercialization and who sell soybean, as from July 27, 2022, to a buyer who will export such product directly or as a result of a productive process carried out in the country and who do not export such goods on their own account, may, with the pesos received from such sales until August 31, 2022:
(i) purchase foreign currency bills for the formation of foreign assets for up to the equivalent of 30% of the amount in pesos received from the sale, once the PAIS tax and the withholdings provided by the Federal Administration of Public Revenues in its General Resolution No. 4815 (regime of perception on account of Income Tax and Personal Assets Tax for foreign currency purchase transactions) were applied.
(ii) credit the amount in pesos received for the sale that was not used for the above mentioned in a «Special account for holders with agricultural activity».
For the purposes of certifying the amounts in their favor, the producer and/or operator must designate a single local financial entity, which will be responsible for:
(i) registering before the BCRA the detail of the soybean sale transactions of the producer and/or operator to an exporter and the net amounts in pesos received for such sales.
(ii) issue the certifications so that the producer and/or operator may make the purchases of foreign currency and credit funds in a «Special account for holders with agricultural activity».
Likewise, the balances of these accounts may be used for:
(i) non-transferable internal bills of the BCRA in pesos settleable by the Reference Exchange Rate Communication «A» 3500 (LEDIV) at zero rate;
(ii) public and private securities, in pesos adjustable by the exchange rate; and
(iii) other destinations in pesos.