Circular CAMEX 1-326: Single and Free Foreign Exchange Market

CENTRAL BANK OF THE ARGENTINE REPUBLIC ___________________________________________________________ COMMUNICATION " A " 3471 I 08/02/02 ___________________________________________________________ TO FINANCIAL INSTITUTIONS: Ref.: Circular CAMEX 1 - 326 Single and Free Foreign Exchange Market We are writing to inform you that it has been resolved that, as of 11 February 2002, a Single and Free Foreign Exchange Market will operate for all foreign exchange transactions, with the following characteristics: 1. The exchange rate will result from the free play of supply and demand. 2. Foreign exchange transactions may only be carried out at entities authorized by the Central Bank to operate in foreign exchange, which are empowered to carry out all operations regulated by implementing rules, whether or not they require prior authorization from the Central Bank, and must in all cases comply with the requirements established or to be established for each specific operation or concept. 3. All operations that do not comply with the provisions of the foreign exchange regulations are subject to the Foreign Exchange Penal Regime. 4. Foreign exchange sale transactions in the Single and Free Foreign Exchange Market shall be carried out against banknotes in pesos. In addition, the sale of foreign exchange against the applicant's own check or by debit to their account shall be admitted when the payment abroad corresponds to the following concepts: i. Payments of expenses for participation in fairs and exhibitions for the promotion of exports. ii. Payments for imports of goods and services related to the import and export of goods. Import payments shall comply with the regulations established by the Central Bank. iii. Payments of financial obligations for principal and interest. In the cases where applicable, the consent of the Central Bank must be recorded. iv. Other payments for services abroad. When the nature of the service to be paid does not have a direct relationship with the activity carried out by the company, a copy of the original contracts giving rise to the

obligation and an opinion on its existence signed by an external auditor or, where applicable, a public accountant, with a signature certified by the Professional Council, must be submitted.

v. Payments of profits and dividends. The submission of an opinion from an external auditor certified by the Professional Council and the consent of the Central Bank shall be required when the latter is required in accordance with the rules in force at the time of settlement.

5. Transfers abroad by the non-financial private sector, the financial sector, and public companies that are not budgetarily dependent on their respective administration, for capital on financial loans and profits and dividends, made in the next 90 consecutive days counted from 11.2.02, shall require the prior consent of the Central Bank, regardless of the form of payment. This requirement shall not be necessary when the obligation of the private sector corresponds to: a) debts with International Organizations, b) debts with banks participating in the financing of investment projects co-financed by International Organizations, and c) debts with official credit agencies or guaranteed by them. The Central Bank shall establish the information regime through which requests for consent shall be submitted.

6. Financial and foreign exchange entities shall comply with the requirements for the registration of transactions and the identification of their clients. On the foreign currency purchase and sale slips, which are attached as an annex, the client's signature must appear, and the client must present an identity document admitted for transactions with financial entities. Copies of said slips, which shall remain in the possession of the entity, shall be duly filed and kept available to this Central Bank.

7. For individuals residing in the country, the CUIT number, or in its absence the CUIL; or in its absence the DNI, must be recorded on the purchase and sale slip. In the case of tourists, the date of entry into the country, the country of origin code, and the passport number or the document enabling entry into the country must be recorded.

8. In the case of clients that are legal entities, prior to carrying out the foreign exchange transaction, the relevant instruments with their powers verified must be registered at the financial entity, exchange house, agency, or office, which shall make the entity responsible for the capacity of representation invoked by the persons signing the slip.

9. Financial and foreign exchange entities shall comply with the information regime established in the rules communicated separately. Non-compliance shall be subject to the application of Article 41 of the Financial Entities Law.

10. Financial and foreign exchange entities shall comply with the requirements in force regarding taxation and the prevention of money laundering and other illicit activities; also, in the event that an attempt or existence of violations of current provisions is presumed, such circumstance shall be immediately reported to this Central Bank in order to adopt the relevant measures.

11. The Single and Free Foreign Exchange Market shall operate from 10 to 17. The Central Bank shall enable special hours upon request by entities authorized to operate in foreign exchange. Such authorization requests shall be deemed granted if no objections are raised by this Bank within the seven business days following receipt of the request note at the Central Bank.

12. All foreign exchange rules issued prior to the date that conflict with the provisions of this Communication are hereby repealed.

We send you our best regards.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Jorge L. Rodríguez
Manager of Foreign Affairs and
Foreign Exchange
Raúl O. Planes
Deputy General Manager of Operations

ANNEXES

WITH COPY TO THE HOUSES, AGENCIES, OFFICES AND EXCHANGE BROKERS

CENTRAL BANK OF THE ARGENTINE REPUBLIC
FOREIGN EXCHANGE AND CURRENCY MANAGEMENT
FREE FOREIGN EXCHANGE MARKET
PURCHASE OF FOREIGN EXCHANGE FROM CLIENTS
DATE
TICKET NO.
(assigned by the entity)

ENTITY:		ENTITY CODE
APPLICANT		CUIT/CUIL/DNI (*)
ADDRESS	POSTAL CODE	COUNTRY OF ORIGIN CODE (**)	DATE OF ENTRY (**)
CONCEPT OF THE TRANSACTION	CONCEPT CODE	FORMALIZATION NO. (**)
PURCHASED INSTRUMENT CODE	CURRENCY CODE	AMOUNT (without cents)	EXCHANGE RATE
PAYER (**):
ADDRESS		COUNTRY CODE
FOREIGN PAYING BANK (**):		SWIFT CODE

I declare under oath that the information provided is exact and true, within the terms provided for in the Foreign Exchange Penal Regime, of which I am fully aware of its rules and sanctions.

Signature
Full name and ID number

We certify that the signature(s) above match(es) the one(s) registered in our books (***)

Date
Signature and Seal

[*] - In the case of a tourist, the date of entry into the country, the country of origin code, and the passport or document authorizing entry into the country must be registered.

[**] - When applicable according to the requested transaction.

[***] - When the applicant does not have a signature registered with the entity because they are a private individual, the certification refers to the fact that the signature was placed in the presence of the certifying official and that their identity was verified by checking their identity document.

CENTRAL BANK OF THE ARGENTINE REPUBLIC
FOREIGN EXCHANGE AND CURRENCY MANAGEMENT
FREE FOREIGN EXCHANGE MARKET
SALE OF FOREIGN EXCHANGE TO CLIENTS
DATE
TICKET NO.
(assigned by the entity)

ENTITY:		ENTITY CODE
APPLICANT		CUIT/CUIL/DNI (*)
ADDRESS	POSTAL CODE	COUNTRY OF ORIGIN CODE (**)	DATE OF ENTRY (**)
CONCEPT OF THE TRANSACTION	CONCEPT CODE	DATE OF EMBARKATION (**)
SOLD INSTRUMENT CODE	INSTRUMENT CODE RECEIVED	CURRENCY CODE	AMOUNT (without cents)	EXCHANGE RATE
BENEFICIARY ABROAD (**)		ACCOUNT NO.
ADDRESS		COUNTRY CODE
RECEIVING BANK ABROAD (**):		SWIFT CODE

I declare under oath that the information provided is exact and true, in the terms provided for in the Foreign Exchange Penal Regime, of which I have full knowledge of its rules and sanctions.

Signature
Printed name and ID number

We certify that the signature(s) above match(es) the one(s) registered in our books (***)

Date
Signature and Seal

[*] - In the case of a tourist, the date of entry into the country, the country of origin code, and the passport number or document authorizing entry into the country must be registered.

[**] - When applicable according to the requested transaction.

[***] - When the applicant does not have a signature registered with the entity because they are a private individual, the certification refers to the fact that the signature was placed in the presence of the certifying official and that their identity was verified by checking their identity document.