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The Central Bank introduced new exchange restrictions for payments abroad through the use of credit, debit or prepaid cards

The Central Bank of the Argentine Republic (Banco Central de la República Argentina, the “Central Bank”) through Communiqué “A” 6823 dated October 31, 2019 (the “Communiqué 6823”), introduced new limits and restrictions for accessing to the FX market.

In this regard, Communiqué 6823 established the following restrictions:

(i) financial entities and other Argentine card issuers will require prior approval of the Central Bank to access the FX market to make payments abroad for using Argentine credit, debit or prepaid cards on or after November 1st, 2019, when such payments were originated, directly or indirectly, through the use of international payment systems, in the following transactions:

  • the participation in games of chance and bets of different types; and/or
  • the transfer of funds to accounts of payment service providers; and/or
  • the transfer of funds to investment accounts opened with foreign investment managers; and/or
  • the performance of foreign exchange operations and/or,
  • the purchase of cryptocurrencies.

(ii) financial entities and other Argentine card issuers will be able to grant cash advances up to the amount of US$50 per transaction to cardholders abroad.

It should be noted that Communiqué 6823 does not apply to purchases abroad made with Argentine credit and debit cards.

Access to the complete text of the Communiqué 6823 can be found here.

Access a summary of the exchange regulations set forth by the Central Bank here.

This publication does not offer a legal opinion on specific matters. If necessary, you should seek specialized legal counsel.

Sebastián Luegmayer – Partner

Email: LuegmayerS@eof.com.ar

Phone: +54 11 4346 1045