Circular Circulation Monetary - CIRMO 1

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION "A" 2 01/07/80
TO FINANCIAL ENTITIES:
Ref.: Circular CIRCULATION MONETARY -
CIRMO 1 - 1.
We address you to accompany you with the ordered text to date of the provisions issued by this Institution, which are applicable to the subject matter referenced.
We greet you very respectfully.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Miguel C. Bruzón
Treasury Manager
Elías Salama
General Submanager
ANNEX.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
CONTENT
Circular CIRCULATION MONETARY CIRMO - 1
I - Banknotes and coins in circulation.
II - Imitation of monetary values and alteration of banknotes and coins.
III - Cash exchange services to the public (banknotes and coins) and exchange of damaged banknotes.
IV - Invalidation of counterfeit banknotes.
V - Procedures for the purification of cash.
VI - Distribution of coins in the interior of the country.
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BANCO CENTRAL DE LA REPUBLICA ARGENTINA
ORDERED TEXT
CIRCULATION
Circular MONETARY REGULATION CIRMO 1
I - Banknotes and coins in circulation
By virtue of the power conferred by its Organic Charter, and taking into account the provisions established by Law 18.188 and its Regulatory Decree 7.250/69, from January 1, 1970, the Central Bank has issued banknotes and coins that make up the current monetary line, whose unit is the peso. The banknotes are of uniform size, 155 by 75 millimeters. The values of $ 500, 1,000, 5,000, 10,000, 50,000, 100,000, 500,000 and 1,000,000 reproduce on their obverse the effigy of General José de San Martín. The reverses present panoramic views of different areas of the country, monuments, events or historical places and fronts of public buildings. The metal pieces, composed of values of $1, 5, 10, 50 and 100, were minted in circular shape, with a reeded edge, on planchets of copper (92%), aluminum (6%), nickel (2%). From May 1980 onwards, with the same characteristics and coloration, the values of $50 and 100 are minted on planchets of steel plated with brass and nickel. In addition, the Central Bank has put into circulation legal tender coins allusive to the 1978 World Football Championship, of $20, 50, 100, 1,000, 2,000 and 3,000. These last three values were minted in 900 silver.
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BANCO CENTRAL DE LA REPUBLICA ARGENTINA
ORDERED TEXT
Circular CIRCULATION MONETARY CIRMO 1 - 4
I - Banknotes and coins in circulation
By virtue of the power conferred by its Organic Charter, and taking into account the provisions established by Law 18.188 and its Regulatory Decree 7.250/69, from January 1, 1970, the Central Bank has issued banknotes and coins that make up the current monetary line, whose unit is the peso. The banknotes are of uniform size, 155 by 75 millimeters. The values of 500, 1,000, 5,000, 10,000, 50,000, 100,000, and 500,000 pesos reproduce on their obverse the effigy of General José de San Martín. The reverses present panoramic views of different areas of the country, monuments, events or historical places and fronts of public buildings. The metal pieces, composed of values of 1, 5, 10, 50 and 100 pesos were minted in circular shape, with a reeded edge, on planchets of copper (92%), aluminum (6%), nickel (2%). From May 1980 onwards, with the same characteristics and coloration, the values of $50 and $100 are minted on planchets of steel plated with brass and nickel. In addition, the Central Bank has put into circulation legal tender coins allusive to the 1978 World Football Championship, of 20, 50, 100, 1,000, 2,000 and 3,000. These last three values were minted in 900 silver.
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B.C.R.A.
II - Imitation of monetary values and alteration of banknotes and coins. CIRMO -1

1. It is prohibited to manufacture or put into circulation in the territory of the Republic, pieces of appearance similar to banknotes, coins or other national or foreign values, whether for commercial propaganda purposes or for any other object.
2. It corresponds to withdraw from circulation and remit to the Central Bank, for exchange and cancellation, the altered coins and the banknotes with inscriptions, figures or legends.
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B.C.R.A.
III - Cash exchange services to the public (banknotes and coins) and exchange of damaged banknotes. CIRMO -1

1. These services will be provided by banking entities and savings banks on an irrevocable basis, during the usual hours of attention to the public and without discriminating whether the presenter is or is not a client of the entity.
2. A damaged banknote is understood to be one that is torn, perforated, erased, stained, discolored, dirty, burned or cut off by involuntary act and whose surface reaches, at least, sixty percent of the complete banknote.
3. If the presented banknote is divided or fragmented, it may be renewed provided that the fragments clearly belong to the same specimen and the total surface reaches, at least, sixty percent of that of the complete banknote.
4. The non-exchangeable specimens must be invalidated by means of a stamp stamped with indelible ink that says "No Value" and sent to the Central Bank, which will retain them for a period of 60 days, to then proceed to their destruction.
5. The Central Bank may refuse the renewal of banknotes that, despite presenting a sufficient surface, induce, by their state or by the way in which they have been divided, cut, mutilated or altered, to consider that their invalidation or deterioration has been voluntary, with the interested party bearing the burden of proving otherwise, through management before the intervening entity.
6. The Central Bank may exchange any banknote accidentally damaged, which does not meet the sixty percent of the complete banknote, if the presented fragments and the accompanying proof fully and reliably justify, in its opinion, the accidental nature of the fact and that the rest of the banknote could not be used on another occasion. The Central Bank will resolve in a single instance any case of doubt or claim regarding damaged banknotes.
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B.C.R.A.
IV - Invalidation of counterfeit banknotes. CIRMO -1

1. Institutions included in the Law of Financial Entities must retain the counterfeit banknotes presented to them.
2. The banknote deemed counterfeit will not be returned to the interested party. In all cases, a record will be drawn up in which all characteristics that contribute to identifying it will be recorded, as well as the data of the person who presented it.
3. The banknote will be sent to the Central Bank without additions or perforations, accompanied by a copy of the aforementioned record.
4. In case of doubt or if the person presenting the banknote alleges its legitimacy, the receiving entity will give the interested party a photocopy or, in its absence, a receipt in which the characteristics of said specimen are specified unequivocally.
5. If the entity has evidence or suspects that the presenter is the author or accomplice of fraud, it may place them at the disposal of the competent authority.
6. The Central Bank will resolve in a single instance any case of doubt or claim regarding the authenticity of banknotes.
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B.C.R.A.
V - Procedures for the purification of cash. CIRMO -1

1. General provisions.
   1.1. Entities will proceed to purify the cash that enters, classifying banknotes into "GOOD USE" and "DAMAGED".
   The banknotes must be packaged in packs of 100 units of the same value, with own bands, on which the entity's date stamp and signatures of the personnel responsible for their count will be stamped. In the case of damaged banknotes, each one must be intervened with the stamp of the presenting entity or be mechanically perforated on a surface that covers at least 60% of it. To facilitate verifications, they will proceed to stamp on the band, on the edge of all packs of 100 units, a stamp of clearly legible characters with the name of the entity, which must be placed on the same side for reasons of uniformity. Finally, the packs will be packaged in bundles of 1,000 units.
   1.2. Once the aforementioned purification has been carried out, they will deposit the damaged specimens in the Central Bank or in the Regional Treasury, as appropriate. With respect to "good use", they will separate what is necessary for their operations and the excess, if any, will be deposited or made available to the Central Bank.
   1.3. Entities that operate with Regional Treasuries will inform them of the respective authorized signatures that will intervene in their operations, through formula 2570.
   1.4. Those that participate in the interbank clearing system for banknotes will inform other entities of the signatures that will intervene in said system.
2. Entities included in the central zone of the Federal Capital.
   2.1. Damaged banknotes - Deposits.
   Damaged banknotes will be delivered together with a deposit slip - formula 405 A -, in triplicate, and on the back, a record will be left of the quantity of units by denomination, their equivalent in pesos and the total amount, data that will be verified by the official responsible for their reception. Once the deposit is formed, the presenting entity will receive the triplicate of the respective deposit slip, intervened with the stamp and signature of the Central Bank. The conformity granted in these cases is conditional, and consequently, subject to the result of the subsequent verification.
   2.2. Banknotes in "GOOD USE".
   The excesses made available to the Central Bank must be considered as follows.
   2.2.1. In order to avoid unnecessary handling of the mass of banknotes required by financial activity, entities will adhere to the following system of interbank clearing of banknotes, by which they will supply each other with the cash they need for their operations, according to the instructions of the Central Bank.
   The excess of banknotes in "good use" will be made available to the Central Bank; it will be informed daily about its movement through formula 3486, whose balance will reflect the amount of cash it maintains in custody in its treasuries.
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B.C.R.A.
V - Procedures for the purification of cash (Continuation). CIRMO -1 Entities may not dispose of the excess they have made available to the Central Bank, even if they require it for their own needs.
2.2. 2. They will be accounted for through the opening of off-balance sheet accounts:

• Active Account: CURRENCY IN CUSTODY FOR ACCOUNT OF B.C.R.A.
• Passive Account: B.C.R.A. - CURRENCY IN CUSTODY.
  2.2. 3. Such excesses will be credited in the corresponding current accounts at the Central Bank, on the same day they are declared.
  2.2. 4. Entities are obliged to give immediate compliance to the fund delivery orders issued by the Central Bank, within the hours fixed for public attention.
  2.2. 5. The orders issued by the Central Bank will have validity only for the day on which they were drawn up.
  2.2. 6. Entities that have fund needs for their operations will request them one day in advance, using formula 2715.
  2.2.7. Likewise, when they need quantities of banknotes above their normal needs during certain periods, they must carry out advance and gradual supply plans, to avoid the inconveniences of moving a large mass of cash on the same day.
  2.2.8. Entities may not make deposits in banknotes at the Central Bank without its express authorization, except those made with "DAMAGED" banknotes.
  2.2.9. Any claim for differences that may arise in the delivery of cash will be reserved exclusively to the intervening entities, with no responsibility whatsoever for the Central Bank.
  2.2.10. The Central Bank will reimburse the proportional part of the insurance corresponding to the excesses of cash declared to its order to entities that have their banknote holdings in treasuries fully insured. To this effect, they must present, after the expiration of the respective policy, a settlement in which the amount to be reimbursed is recorded, formulating a detail by date and days in which said funds have been kept at the order of the Central Bank, as well as specifying the conditions under which they have subscribed the pertinent policies.

3. Entities included within the areas of influence of the Regional Treasuries.
   The accounting of the credits and debits originating in the operations will be carried out by the system currently used at the headquarters of the Central Bank in the Federal Capital. In all cases, the accounting entries will have value on the date on which the movement occurred.
   3.1. Damaged banknotes - Deposits.
   3.1.1. Damaged banknotes will be delivered together with a deposit slip - formula 3232 - within the hours of public attention.
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B.C.R.A.
V - Procedures for the purification of cash (Continuation). CIRMO -1
3.1.2. Depositing entities that request reimbursement of expenses for the transfer of damaged banknotes must make the deposit separately, consigning their origin.
3.1.3. Once the deposit is formed, the presenting entity will receive the quadruplicate of the respective slip, intervened with the stamp and signature of the Regional Treasury. The conformity granted in these cases to the entities is conditional and consequently subject to the result of the subsequent verification of the deposit.
3.1.4. Once the sampling control operation is finished, if the tolerance level determined by the Central Bank is met, the initially made deposit will be adjusted according to the difference detected in the sample.
3.1.5. If said tolerance level is not met, the entity will be debited the amount resulting from dividing the difference detected in the sample by the quantity of hundreds recounted, multiplied by the quantity of hundreds of the lot considered.
3.16. If the depositing entity does not accept the adjustment made in accordance with the methodology indicated in points 3.1.4. and 3.1.5., it must withdraw all the deposited banknotes.
31.7. In order to reduce costs and risks, unnecessary movements of funds will be avoided, so that financial entities, when the quantity and amount justify it, will deposit damaged banknotes when making a trip to transfer excesses or withdraw cash for their own needs. If this circumstance does not exist, prior authorization from the Central Bank will be required to make the deposits.
3.1.8. The expenses incurred by financial entities exclusively for the transfer of damaged banknotes to the Regional Treasury, which respond to the conditions exposed in point 3.1.7., will be reimbursed by the Central Bank, provided that the depositing entities are located at distances greater than those that, in each case, this Institution determines; to this effect, the depositing entity will send a note to the Central Bank of the Republic Argentina attaching the proof of expenses incurred and a copy of the respective deposit slip for its consideration and, if applicable, the resulting amount will be credited in its current account.
3.2. Banknotes in "Good Use"
3.2.1. Entities located in the central zone of the city where the respective Regional Treasury is located.
With the excess of banknotes in "good use", the procedure will be in accordance with what is established in point 2.2.
3.2.2. Entities located outside the central zone.
The excess of banknotes in "good use" can be deposited in the Regional Treasury, within the hours of public attention, using formula 3232.
The entities will receive the quadruplicate, in which the Regional Treasury will leave a record of its prior control regarding denominations, integration of thousands by ten hundreds and that these do not show signs of having been violated. This conformity will be conditional, as the Regional Treasury will not recount the banknotes. Consequently, the deposit is subject to the result of its subsequent verification by the entities that, ultimately, receive them as a consequence of the subsequent allocations made by the Regional Treasury.
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B.C.R.A.
V - Procedures for the purification of cash (Continuation). CIRMO -1 Any claim that arises in the deliveries of this cash will be reserved exclusively to the intervening entities, with no responsibility whatsoever for the Regional Treasury.
3.3. Cash provision.
Entities that need to supply themselves with banknotes will proceed in accordance with what is established in point 2.2.6 The following day they will present the corresponding check, to the order of the Central Bank of the Republic Argentina and against their current account with it. With prior signature approval by the Regional Treasury, they will receive delivery orders or the assigned banknotes, as appropriate. Entities that require quantities of banknotes above their normal needs will adhere to what is provided in item 22.7.
3.3.1. Entities located within the central zone.
The procedure will be in accordance with what is established in points 2.2.1., 2.2.4., 2.2.5. and 2.2.9.
3.3.2. Entities that operate outside the central zone.
The Regional Treasury will deliver the allocated cash according to the availabilities ("good use" or "new").
4. Entities that do not have houses installed in the central zone of the Federal Capital or in the areas of influence of the Regional Treasuries.
4.1. Banknotes in "good use".
The excess of cash in "good use" can be deposited directly in the Central Bank, who will deliver them without verification to other entities.
Consequently, any claim that arises in the deliveries of this cash will be reserved exclusively to the intervening entities, with no responsibility whatsoever for the Central Bank.
4.2. Damaged banknotes - Deposits.
Entities located outside the Federal Capital, its suburban zone or area of influence of the Regional Treasuries, will make such deposits in the Bank of the Argentine Nation or in the Central Bank, with prior authorization.
5. Instructions for the use of the formulas to be used.
405 - A: Deposit slip.
It will be integrated by the entities, in triplicate, to make deposits in the Central Bank.
2570: Registry of authorized signatures of the banks.
They must present two sets to the Regional Treasury, duly integrated, and with the corresponding certification on the back.
2714: It will be integrated by the Central Bank or Regional Treasury to satisfy the needs of
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B.C.R.A.
V - Procedures for the purification of cash (Continuation). CIRMO 1 cash of the entities. It consists of 3 elements -with security background- which will have the following procedure:
Elements 1 and 2: They will be provided to the entity requesting funds, against delivery of a check drawn to the order of the Central Bank for the requested amount, for presentation to the entity that must supply the cash. Element 1: With prior signature of the collecting entity on the printed receipt, it will remain in the paying entity as proof of the operation carried out. Element 2: With prior signature of the collecting entity on the duplicate receipt, it will be delivered to the payer, who in turn will sign as proof of the operation carried out, sending it on the day and before the closing of operations to the Central Bank or the Regional Treasury. Element 3: It will remain for the entity that must supply the cash. It will be delivered in the premises of the local Clearing House at the last hour of the day prior to the operation, in a closed envelope addressed to the official designated by each entity. In elements 1 and 3, juxtaposed, a stamp of the Central Bank will be stamped. 2715: It must be integrated by the entities that need funds for their operations and presented to the Central Bank or Regional Treasury one day in advance. 3232: Deposit slip. It must be integrated in quadruplicate. On its back, the quantity of units by denomination, their equivalent in pesos and the total amount will be recorded. 3486: It must be integrated in quadruplicate, informing about the movements and balances and must be in the possession of the Central Bank or Regional Treasury before the closing of operations. In the row "Excesses of the date", the quantity of units for each denomination of banknotes that constitutes the cash made available to the Central Bank and the amount in pesos will be recorded.
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B.C.R.A.
VI - Distribution of coins in the interior of the country CIRMO 1 The Central Bank will fulfill free of charge all requests for shipment that are made to it by both the headquarters of the entities and the houses in the interior, to cover the demand generated by the aforementioned service.
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