Argentina: Restriction to DvP external transactions in Argentinian Pesos (ARS)
Clearstream Banking1 would like to inform customers that effective
further to Communication A7106 issued by the Central Bank of Argentina introducing changes and new restrictions on both the foreign exchange and securities market:
- The Central Bank established that non-residents will not be able to sell securities versus foreign currency in the local market.
- Exception is made for securities purchased in the country versus foreign currency from 16 September 2020 onwards and that will remain in non-resident accounts for at least one year.
- Additionally, transactions of securities traded and acquired offshore are not allowed to settle in ARS in the local market.
In addition, the Comisión Nacional de Valores (CNV) issued Resolution 856 establishing parking periods for local counterparties to apply (i) the sale of securities against foreign currency and (ii) the transfer of securities to or from international depositories:
- Securities acquired in ARS from the international depositories will be subject to a 15-business day minimum period of holding before being available to be sold versus ARS in the local market.
- Securities acquired in foreign currency and/or received free of payment can be transferred to international depositories with no minimum holding period.
- Exceptions apply to securities deposited because of the settlement of a primary auction issued by the National Treasury.
- A five-business day parking period for settlement of securities sales versus foreign currency.
- Exception applies to securities initially purchased versus foreign currency.
- Securities received from international depositories will be subject to a five-business day parking period before being available to be sold versus foreign currency in the local market.
- All minimum terms for holding securities are counted from the effective date of credit of the security in the local custodian’s subaccount.
Impact on customers
From the local custodian’s perspective, it cannot be confirmed whether securities are traded and acquired offshore, DvP transactions in ARS are suspended until further clarification from regulators.
The main impact for ICSD participants is derived from Central Bank Resolution A7106 that prevents the settlement of external instruction in ARS for the transaction arranged and acquired abroad, therefore Clearstream Banking’s instruction will be rejected and customers will be informed accordingly.
Alternatively, Clearstream Banking customers can settle external transactions on a free of payment basis.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.