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Argentina Introduces Foreign Currency Controls — Orbitax Tax News & Alerts

Argentina has issued Decree No. 609/2019 of 1 September 2019, which introduces foreign currency controls that will apply from 1 September 2019 through 31 December 2019 in response to the recent devaluation of the Argentine peso.

The controls include that both companies and individuals are required to obtain authorization from the Central Bank of Argentina (BRCA) to purchase foreign currency or to transfer funds abroad in certain cases. This includes approval for the transfer of profits and dividends abroad and for the transfer funds abroad to purchase assets and/or to enter into hedging transactions using financial derivatives, as well as for payments made to foreign related parties for goods and services if exceeding USD 2 million per month. The controls also include certain conversion requirements, including that foreign currency obtained from the export of goods and services and funds obtained from new financing must be converted into Argentine peso within prescribed time limits.