Further to our Announcement A15245, dated 24 December 2015, Clearstream Banking1 wishes to inform its customers of the modifications introduced by the Central Bank of Argentina (Communication “A” 5899) on foreign exchange regulations, applicable to foreign investors in Argentina.
Effective
5 February 2016
modifications were introduced on the repatriation of funds as follows:
- All portfolio investments of non-residents are no longer subject to the U.S. Dollars (USD) 500,000 monthly restriction and the holding period of 365 days has been reduced to 120 days;
- These requirements apply for all portfolio investments regardless of the date on which such investments entered the country; and
- Funds entering the market under “Portfolio investments” can be repatriated with no restrictions to the amount as long as the foreign investor complies with certain conditions.
The Creation Link Guide - Argentina has been updated to provide additional information on these new measures.
Impact on customers
As Clearstream Banking does not currently offer this repatriation service, customers are not impacted.
Reminder
Clearstream Banking’s repatriation procedure for transactions that fall under the exception to the repatriation restrictions remain unchanged and applicable. Customers can request to have Argentine Pesos (ARS) converted into USD according to the existing procedure. Please refer to the Announcement A15125, dated 29 June 2015, describing this procedure and to the Creation Link Guide - Argentina.
Clearstream Banking will continue to monitor the Central Bank regulations via its local Cash Correspondent Bank, Citibank Argentina and will keep its customer informed with any relevant updates.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and 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.