trending Market Intelligence /marketintelligence/en/news-insights/trending/6mTNyrbGx82ydH7QuZZZ3A2 content esgSubNav
In This List

BCRA requires banks to seek authorization to transfer earnings abroad

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


BCRA requires banks to seek authorization to transfer earnings abroad

Banco Central de la República Argentina now requires banks in Argentina to request authorization before transferring their earnings abroad, according to a regulatory norm published Aug. 30.

Regulatory sources cited by La Nación claim the goal is to "keep liquidity within the (Argentine financial) system," in order to fulfill purchasing demands from depositors.

The decision, which represents a stricter stance on capital flows, reportedly applies only to financial institutions' operations in Argentina.

The Argentine government announced Aug. 28 plans to extend maturity debts on over $100 billion in a bid to alleviate the financial burden on public accounts and apply fewer dollar reserves to canceling debt obligations.

"The (Aug. 28) measures prioritize the use of foreign reserves to preserve financial and monetary stability, even though this implies delaying payments to big investors of public debt," Guido Sandleris, president of the central bank, said in a statement.

The regulator has been regularly auctioning foreign reserves in recent weeks to temper the high volatility of the Argentine peso following primary elections. Since Aug. 11, reserves have fallen by more than $10 billion to $56 billion as of Aug. 29.

The decision takes effect as of Aug. 30, the regulator said.