Circular Creation, Operation and Expansion of Financial Entities - CREFI 1 - 14. Authorization for banking entities and financial companies to conduct forward foreign exchange operations and certain foreign exchange activities

CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 1234 03/08/88
TO FINANCIAL ENTITIES:
Ref.: Circular CREATION, OPERATION AND EXPANSION OF FINANCIAL ENTITIES.
CREFI - 1 - 14. Authorization for banking entities and financial companies to conduct forward foreign exchange operations and certain foreign exchange activities.

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

"1. Banking entities that are not authorized to operate in foreign currency and that possess the patrimonial responsibility established in point 1.3 of Chapter X of Circular CREFI 1-14 may carry out the following operations:

• Purchase and sale of foreign currencies and banknotes.
• Purchase and sale of minted gold and bars of "good delivery".
• Purchase, sale, and issuance of checks.
• Transfers.
• Postal orders.
• Bank and postal drafts.
• Traveler's checks.
• Arbitrage.

2. Financial companies that hold 50% of the patrimonial responsibility required of them as a commercial bank may carry out the following operations in foreign currency:

• Purchase and sale of foreign currencies and banknotes.
• Purchase of checks, drafts, and transfers in foreign currencies, which must be sold to institutions authorized to operate in foreign exchange.
• Arbitrage.

3. Banks that are authorized to operate in foreign currency in categories "A", "B", and "C", and the entities referred to in points 1 and 2, may conduct forward operations.

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4. Entities that incorporate the operations provided for in this resolution shall comply, where applicable, with the provisions regulating them.
   They must inform, with a notice of no less than fifteen (15) calendar days, of the date of commencement of those activities, accompanied by a certificate issued by an external auditor accrediting that they reach the required computable patrimonial responsibility."

We salute you very respectfully.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Miguel I. Crego Germán R. Pampillo
Manager of Authorization of Deputy General Manager Financial Entities