Circular CREFI 1 - 33. OPASI 2 - 113. OPRAC 1 - 366. Derogation of established categories for operating in foreign currency

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 2192 14/02/94 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
CREFI 1 - 33.
OPASI 2 - 113.
OPRAC 1 - 366.
Derogation of the categories established for operating in foreign currency

We address you to inform you that this Institution adopted the following resolution:

"1. To render ineffective, as of 1.2.94, the categorization of banking entities for the execution of operations in foreign currency and foreign trade established in point 1.1. of Chapter X of Circular CREFI - 1 (text according to Communication "A" 46).

2. To establish that, with effect from 1.2.94, to carry out those foreign trade operations that imply the direct assumption of risks or liability arising therefrom (such as those related to documentary credits), financial companies must have integrated the minimum capital equivalent to that which would correspond to them as a commercial bank, for the purposes provided in point 1.2. of the resolution disseminated through Communication "A" 2136.
   Until they possess the required minimum capital, calculated in accordance with point 1. of the resolution disseminated through Communication "A" 2136, financial companies may only carry out the aforementioned operations through financial entities that, from the effective date of this resolution, are authorized to carry out, on their own, these transactions. Without prejudice to the foregoing, financial companies may carry out, without observing any additional minimum capital requirement, all exchange operations that exchange houses are authorized to carry out.

3. To provide that, as of 1.2.94, financial companies may carry out swap and forward operations in foreign currency referred to in the regime of Communication "A" 1590 and complementary provisions, provided they have integrated the minimum capital equivalent to that which would correspond to them as a commercial bank, for the purposes provided in point 1.2. of the resolution disseminated through Communication "A" 2136.

4. To substitute, with effect from 1.2.94, point 2. of the resolution disseminated by Communication "A" 1234 (text according to Communication "A" 1823), with the following:
   "2 - Credit unions and housing savings and loan associations that, for the purposes provided in point 1.2. of the resolution disseminated through Communication "A" 2136, have integrated the minimum capital equivalent to that required for exchange houses may carry out all operations that are authorized to be carried out by the latter."

5. To repeal, with effect from 1.2.94, the provisions referred to in points 1. and 3. of the resolution disseminated through Communication "A" 1234."

Consequently, the entities authorized to operate according to the terms referred to in points 1., 2. and 4. of the transcribed resolving text above are enabled to carry out transactions in foreign currency such as:

• Purchase and sale of currencies and banknotes.
• Arbitrage.
• Purchase, sale and issuance of drafts and transfers in foreign currency abroad.
• Purchase and sale of checks and traveler's checks.
• Issuance of traveler's checks (only commercial banks).
• Purchase and sale of minted gold and "good delivery" bars and other precious metals.

We clarify that the possibility of operating with precious metals is limited to those that, as in the case of gold, have a market value derived from daily quotations of relevant transactions and that cannot be significantly distorted in the event of liquidation of holdings.

Furthermore, due to the provisions adopted, all banks and financial companies are enabled to carry out swap and forward operations in foreign currency in accordance with the regime of Communication "A" 1590 and complementary provisions.

We greet you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Juan Carlos Isi Daniel R. Mira Castets
Submanager of Standards Submanager of Authorization for Financial Entities of Financial Entities