The Central Bank (BCRA, for its Spanish initials) will loosen restrictions on who is able to access the dollar exchange circuit in the official and financial markets. The news was announced via a surprise communiqué on Tuesday and is part of the government’s intended goal to dismantle foreign exchange restrictions known as “cepo.”The BCRA board will now allow people who received some form of state assistance during the pandemic or have partial subsidies for public utilities to access the foreign exchange market through bonds in foreign currency, i.e., purchase U.S. dollars in MLE and CCL operations. The board also decided to shorten the wait period for companies to access the Free Exchange Market (MLC, for its Spanish initials) and obtain dollars to pay for imports, as well as raise the threshold of what those who export services must declare in the official market. Pharmaceutical products, as well as those related to health care, fertilizers, phytosanitary products destined for local production, basic basket goods, and official imports made by small and medium-sized companies, have access to the foreign exchange market 30 days after customs registration. Luxury goods and finished cars, on the other hand, are paid for after 120 days after registration.

Source: Bueno Aires Herald July 25, 2024 03:09 UTC