Amid the strong tension in the foreign exchange market, the Central Bank today added a new restriction for access to dollars by companies operating in the single, free-exchange market. The monetary authority decided to include the holding of the Cedears within the limit of 100,000 dollars that those companies that access the official exchange market can have.
The Cedears are the securities that represent shares of companies listed on international markets and that can be traded on the Buenos Aires Stock Exchange. They are the inverse instrument to the ADR (acronym of the English of American Depositary Receipt), the certificates through which the shares of Argentine companies are traded in dollars on Wall Street.
Because it is a title that can be bought in pesos, the Cedears were sometimes used to dollarize portfolios and leave them deposited abroad. This operation is the one that the BCRA sought to limit with the rule that its Board of Directors approved today.
According to the Central Bank in a statement, The entity “decided to include the holding of Cedears in the availability limit of 100,000 dollars that companies that access the official foreign exchange market can have.. It also decided to include those instruments that may not be operated in the 90 days prior to or in the 90 days following access to the official market.”
The Cedears are the securities that represent shares of companies listed on international markets and that can be traded on the Buenos Aires Stock Exchange.
This decision by the monetary authority comes at a time when the blue dollar and financials continue to break records. In the marginal market, the US ticket reached $338 and ended up trading at $336, with a rise of 19 pesos.
The exchange measures announced by the Government so that tourists can sell their foreign currency at the value of the financial dollar were ignored by the market, convinced to continue raising the price until the Government reacts with a strong depreciation of the peso.
Notably The Government announced that it will facilitate the liquidation of foreign currency for foreign tourists, who will be able to sell up to USD 5,000 at the financial exchange rate (MEP). Also that it will improve the conditions of access to the exchange market for the payment of imports of inputs for “strategic sectors”.
The measure was made official this followingnoon by the Central Bank through Communication “A” 7551, in which it enabled banks and exchange houses to “receive foreign currency bills from non-resident tourists to specify, on behalf and order of them, the purchase of securities with settlement in foreign currency to later sell them with settlement in pesos”.
”In the event that the non-resident client delivers a foreign currency other than the US dollar, for the purpose of carrying out the purchase of the securities, the equivalent amount in US dollars resulting from an arbitration will be taken”, detailed the BCRA for the cases of tourists who want to exchange euros, reais, Chilean or Uruguayan pesos or any other foreign currency.
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