Circular Foreign Exchange Operations and Movement of Funds and Securities with the Abroad - CAMEX 1 - 18. Calculation and Adjustment of the Peso Equivalent of Foreign Currency Transactions

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 113 29/3/82
TO THE FINANCIAL ENTITIES AUTHORIZED TO OPERATE IN FOREIGN EXCHANGE:
Ref.: Circular FOREIGN EXCHANGE OPERATIONS AND MOVEMENT OF FUNDS AND SECURITIES WITH THE ABROAD – CAMEX – 1 – 18. Calculation and Adjustment of the Peso Equivalent of Foreign Currency Transactions.

We address you to inform you that, after analyzing the differences that arise between the debits and/or credits that this Bank makes, in concept of exchange operations, in the current accounts of the Financial Entities and the vouchers prepared and sent by them, it was established that, in general, they are the product of the use of disparate criteria for the conversion of currencies to local currency.

In order to avoid the problems that derive from this situation and with the object of standardizing procedures, the financial entities are reminded of the need to observe the following guidelines in the integration of the supporting documentation for foreign currency transactions that are processed:

a) Suppression of cents: the fractions of pesos that might result from the conversion of currencies to our currency will not be taken into account, a criterion that adjusts to the provisions of Article 1 of Law No. 21,423. b) Unit exchange rate: the exchange rate to be used must refer to each unit of foreign currency traded. c) Calculation cut-off by exchange rate: when the total amount of a voucher is composed of several partials, the cut-off for the calculation of its peso equivalent will be carried out by distinct exchange rate instead of partial by partial, proceeding to the suppression of cents in each subtotal.

EXAMPLE:

Foreign Currency Exchange Rate
Currency Type Quantity of that Currency Amount xx 127.98 3,253.00 3,253.00 xx 2,324.31 3,253.00 3,253.00 xx 8,052.09 3,253.00 34,170,178 xx 1,200.91 3,248.50 3,901,156 xx 2,350.97 4,269.00 10,036,290 Sum xx 14,056.26 48,108,194

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Foreign Currency
Currency Type Quantity
Exchange Rate of that Currency Amount xx 10,504.38 3,253.00 34,170,748 xx 1,200.91 3,248.50 3,901,156 xx 2,350.97 4,269.00 10,036,290 Sum xx 14,056.26 48,108,194

Taking into account what has been stated and in case of future differences, we inform you that validity will be given to the results obtained through the computerized registration system, put into operation in this Institution, unless in the preparation of the formulas the detailed conditions have been strictly followed and said discrepancies have their origin in causes unrelated to the problem treated.

We salute you very attentively.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Jorge E. Magistrelli
Manager of
Foreign Exchange and Changes
Evaristo H. Evangelista
General Sub-manager