Time deposits and investments, minimum cash, overall net foreign currency position, Communication A 7018 adjustments

2020 - YEAR OF GENERAL MANUEL BELGRANO

COMMUNICATION “A” 7029
28/05/2020

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
OPASI 2 - 601
REMON 1 - 1017
LISOL 1 - 890

Time deposits and investments. Minimum cash.
Overall net foreign currency position.
Communication “A” 7018. Adjust- ments
.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, establishes:

“1. Replace point 3. of Communication “A” 7018 with the following:

“3. Establish that the possibility of making time investments with variable remuneration with yield determined based on the value of cereals or oilseeds provided for in point 2.5.5.4. of the rules on “Time deposits and investments” and based on the variation of the US dollar exchange rate –point 2.5.5.6. of the aforementioned rules– will be limited to persons –natural or legal– with agricultural activity and for an amount of up to 2 times the total value of their sales of cereals and/or oilseeds recorded as from 1.11.19.

All financial institutions may integrate with LELIQ the entirety of the minimum cash requirement in pesos for those time investments.”

2. Replace the last paragraph of point 2.5.3.2. of the rules on “Time deposits and investments” with the following:

“No coverage of exchange rate risk will be required for time investments with variable remuneration based on the US dollar –point 2.5.5.6.–, which, as they are considered in the overall net foreign currency position, have as counterpart the assets and other instruments and operations for financial intermediation in foreign currency or linked to the evolution of the exchange rate, including electronic credit invoices.”

3. Repeal point 1.2.3. of the rules on “Overall net foreign currency position” for loans granted as from the date of dissemination of this communication.”

In due course we will send you the pages that, replacing those previously provided, should be incorporated into the referenced rules.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault
Issuance Manager of Rules

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications