Argentina Central Bank: Enabling Dollar Debt Cards Amidst New Regulations

The Argentine Central Bank (BCRA) has recently issued new regulations that significantly impact foreign exchange controls, with potential implications for the accessibility and liquidity of dollar-denominated assets. This article explores how these changes affect the availability of dollar debt cards and their impact on investors.

The BCRA's new Communique A 7,746 introduces several modifications to foreign exchange regulations, including an extended 180-day period for blue-chip swap transactions. This extended term allows entities requiring access to the official exchange market more time to attest that they did not use the blue-chip swap mechanism. However, this change may have limited impact on the accessibility of dollar debt cards, as the 90-day term still applies to securities and bonds issued under Argentine law.


Another significant change is the new 60-day waiting period for accessing the foreign exchange market to pay for certain services. This requirement may temporarily affect the availability of dollar debt cards for Argentine residents, as they must wait before purchasing foreign currency to pay for services such as legal, accounting, and managerial services, as well as advertising, market research, and public opinion polling services. However, access to the foreign exchange market prior to the 60-day term is possible with prior authorization from the BCRA, which may mitigate the impact on dollar debt card availability.


The requirement for prior authorization to pay interest to related companies abroad may also impact the accessibility of dollar debt cards. This regulation applies to interest payments corresponding to commercial debts for imports of goods and/or services and/or financial loans. While this change may introduce additional administrative burdens, it is unlikely to significantly affect the liquidity of dollar-denominated assets.

The inclusion of gift card acquisitions among transactions requiring BCRA approval may have a more direct impact on the availability of dollar debt cards for Argentine residents. This regulation may limit the use of gift cards or equivalent cards from stores located abroad for consumption that takes place on or after 5.12.23. However, the extent of this impact remains to be seen, as the BCRA's approval process for these transactions is not yet fully understood.

These new foreign exchange controls may have broader implications for the accessibility and liquidity of dollar-denominated assets. While the extended 180-day period for blue-chip swap transactions and the requirement for prior authorization to pay interest to related companies abroad may have limited impact, the new 60-day waiting period for accessing the foreign exchange market to pay for certain services and the inclusion of gift card acquisitions among transactions requiring BCRA approval could potentially affect the availability of dollar debt cards.

The potential implications of these regulations on the Argentine peso's exchange rate and inflation are uncertain. While the new controls may help stabilize the peso and reduce inflation, they could also introduce additional complexities and administrative burdens for businesses operating in Argentina. The attractiveness of Argentina as an investment destination may be affected, as investors may reassess the risks and opportunities associated with these new regulations.

In conclusion, the Argentine Central Bank's new foreign exchange regulations introduce several changes that may impact the accessibility and liquidity of dollar-denominated assets, including dollar debt cards. While some changes may have limited impact, others, such as the new 60-day waiting period for accessing the foreign exchange market to pay for certain services and the inclusion of gift card acquisitions among transactions requiring BCRA approval, could potentially affect the availability of dollar debt cards. Investors should carefully evaluate these changes and their potential implications for their portfolios.