Circular CAMEX 1-510: Single and Free Exchange Market

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A“ 4308
04/03/2005

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
CAMEX 1 - 510

Single and Free Exchange Market.

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We address you for the purpose of informing you that the following has been ordered, effective as from 07.03.05 inclusive:

1. Securities transactions carried out on self-regulated Stock Exchanges and Securities Markets must be paid through any of the following mechanisms: a) in pesos using the different modalities allowed by payment systems, b) in foreign currency by electronic funds transfer from and to demand accounts at local financial institutions, and c) against cable on accounts abroad. In no case is the settlement of these securities purchase-sale transactions allowed by payment in foreign currency banknotes, or by their deposit in custody accounts or in third-party accounts.

2. Local financial institutions may use the funds of their Overall Foreign Exchange Position by accessing the local foreign exchange market (executing the corresponding exchange tickets), to cover their foreign currency needs for the purchase and sale on self-regulated Stock Exchanges and Securities Markets, of securities for their own transactions or for the coverage of transactions of resident and non-resident clients, within the following maximum limits of net purchases or net sales of foreign currency in the last three calendar months at the close of each current month:

The net acquisition of foreign currency in the local foreign exchange market for the purchase of these securities, or as the case may be the net sale of foreign currency resulting from operations with these securities, may not exceed in the last three calendar months, 5 % of the Computable Equity Responsibility measured in United States dollars at the reference exchange rate, which is considered in the determination of the maximum limit of the Overall Foreign Exchange Position of the measurement month.

Institutions that operate making use of this operation must comply with the reporting regime that will be announced separately.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Jorge L. Rodríguez
Principal Manager of
Foreign and Exchange A/C
Raúl O. Planes
General Deputy Manager of Operations

WITH COPY TO THE EXCHANGE HOUSES, AGENCIES AND OFFICES