Circular LISOL 1 - 653: Net Foreign Currency Position. Adjustments

"2015 - YEAR OF THE BICENTENNIAL OF THE CONGRESS OF THE FREE PEOPLES" COMMUNICATION "A" 5851 17/12/2015 TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 653
Net Foreign Currency Position.
Adjustments.

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

"1. Replace point 1.2.3. of the rules on "Net Foreign Currency Position" with the following:
1.2. Exclusions.
...
"1.2.3. The concepts included that the financial entity registers in its branches abroad."

2. Incorporate as point 1.2.4. of the rules on "Net Foreign Currency Position" the following:
   1.2. Exclusions.
   ...
   "1.2.4. Argentine Savings Bonds for Economic Development (BAADE) acquired by primary subscription."

3. Replace the second paragraph of point 2.1. of the rules on "Net Foreign Currency Position" with the following:
   2.1. Negative net foreign currency position.
   ...
   "This position - calculated as a monthly average of daily balances converted to pesos at the reference exchange rate - shall not exceed 15% of the computable equity responsibility of the month prior to the one in question."

4. Replace, with effect from 1.2.16, the first paragraphs of points 2.2.1. and 2.2.2. of the rules on "Net Foreign Currency Position" with the following:

-2-
2.2.1. General limit.
...
"This position - calculated as a monthly average of daily balances converted to pesos at the reference exchange rate - shall not exceed 15% of the computable equity responsibility of the month prior to the one in question or the liquid own resources, whichever is lower."

2.2.2. Limit for forward position.
...
"The daily net positive foreign currency position in forward contracts - daily balance converted to pesos at the reference exchange rate - shall not exceed 7.5% of the computable equity responsibility of the month prior to the one in question."

5. Repeal point 2.3. of the rules on "Net Foreign Currency Position."

6. Provide that the limit on the net position referred to in point 4. of this communication shall be, from 1.3.16 inclusive, 20% of the computable equity responsibility of the month prior to the one in question or the liquid own resources, whichever is lower.

7. Provide that the limit on the forward position referred to in point 4. of this communication shall be, from 1.3.16 inclusive, 10% of the computable equity responsibility of the month prior to the one in question.

8. Establish that between 1.12.15 and 31.1.16 compliance with the limits provided for in the rules on "Net Foreign Currency Position" shall be measured on the basis of the average resulting from dividing the sum of the daily balances of the included concepts registered during that period by the total number of days in the bimonth."

Likewise, we inform you that we will subsequently send you the sheets that, in replacement of those previously provided, shall be incorporated into the rules in question as a consequence of the measure adopted.

We greet you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Matías A. Gutiérrez Girault Darío C. Stefanelli Manager of Issuance Manager of Norms Principal Manager of Issuance and Normative Applications