Single and Free Exchange Market: Access by Local Financial Institutions for Securities Transactions

2010 - YEAR OF THE BICENTENNIAL OF THE MAY REVOLUTION

COMMUNICATION “A” 5086
07/06/2010

TO THE FINANCIAL INSTITUTIONS,
TO THE EXCHANGE HOUSES, AGENCIES AND OFFICES:

Ref.: Circular
CAMEX 1 - 659

Single and Free Exchange Market.

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We address you in order to inform you that the following has been provided, effective as from 11.06.10 inclusive:

1. Replace point 2 of Communication “A” 4308, as amended by Communication “A” 4433 and by point III of Communication “A” 4940, with the following:

“2. Local financial institutions may access the local exchange market by executing the corresponding exchange tickets, to cover their foreign currency needs for the purchase and sale of securities of their own holdings, when it concerns the following transactions:

a. For external financings instrumented in the form of repos.

b. For the primary subscription of bonds issued by the National Government that are denominated and subscribed in foreign currency, in accordance with the public sector financing regulations.

c. For the primary subscription of bonds issued by non-financial private sector companies that are denominated and subscribed in foreign currency, to the extent that the transaction is also eligible for the application of the lendable capacity of local deposits in foreign currency in accordance with the credit policy regulations.

d. For transactions carried out with securities registrable in stock exchanges and self-regulated securities markets of the country, to the extent that:

i. in the course of the day or within the previous or following business day, the transactions carried out are matched with sales and/or purchases to this Central Bank, and/or

ii. they are carried out within a program for the adaptation of the entity's portfolio to regulations of this Central Bank, and/or

iii. throughout the calendar month, the net amounts traded in the local exchange market do not exceed 1% of the entity's Computable Equity Responsibility, measured in US dollars at the reference exchange rate, which is considered in the determination of the limit of the General Exchange Position for the measurement month.”

    2. This regulation additionally replaces the regulations made known by point II of Communication “A” 4764.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Jorge L. Rodríguez
Principal Manager of
Foreign Affairs and Exchange

Juan I. Basco
General Deputy Manager of Operations