Access to the Single and Free Exchange Market by financial institutions through the purchase and sale of securities

2012 – Year of Tribute to Doctor D. Manuel Belgrano

COMMUNICATION “A” 5314
14/06/2012

TO FINANCIAL INSTITUTIONS,
TO EXCHANGE HOUSES, AGENCIES, OFFICES AND BROKERS:

Ref.: Circular
CAMEX 1 - 697

Access to the Single and Free Exchange Market by financial institutions through the purchase and sale of securities.

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We address you in order to inform you that, with effect for exchange transactions agreed from 15.06.2012 inclusive, it has been decided to replace point 2. of Communication “A” 4308 of 4.03.2005, which was replaced by point 1. of Communication “A” 5086 of 7.06.2010, with the following:

“2. Local financial institutions may access the local exchange market by executing the corresponding exchange tickets, to cover their foreign currency needs for the purchase and sale of securities of their own holdings, when it involves the following transactions:

a. For external financing instrumented in the form of repos.

b. For the primary subscription of bonds issued by the National Government that are denominated and subscribed in foreign currency, in accordance with the public sector financing regulations.

c. For the primary subscription of bonds issued by non-financial private sector companies that are denominated and subscribed in foreign currency, to the extent that the transaction is also eligible for the application of the lendable capacity of local foreign currency deposits in accordance with the credit policy regulations.

d. For transactions carried out with securities registrable on self-regulated stock exchanges and securities markets of the country, to the extent that:

i. during the course of the day or within the previous or following business day, the transactions carried out are matched with sales and/or purchases to this Central Bank, and/or

ii. they are carried out within a program for adapting the institution's portfolio to regulations of this Central Bank.”

The modification ordered shall not apply to purchase and sale transactions of securities that have been agreed by financial institutions and that as of the date are pending settlement by the local exchange market, to the extent that those transactions comply with the regulations in force at the date of agreement of the purchase and/or sale transaction of the securities.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Jorge L. Rodríguez
Principal Manager of
Foreign Affairs and Exchange

Juan I. Basco
Deputy General Manager of Operations