On August 28, the Central Bank (BCRA) issued Communication A 6765, obliging “large exporting companies” to sell foreign currency which also  limits their ability to finance themselves in pesos. The regulation establishes that the BCRA has to issue prior approval for banks to finance these types of companies. 

The measure incorporates a modification to the rules on “Credit Policy” and defines “large exporting companies” as non-financial private sector entities whose total exports in the last year represent at least 75 percent of their total sales (taking into account both domestic and foreign markets) whose financing in pesos exceeds 1.5 billion pesos in the financial system as a whole.

The financing limit established by the Central Bank covers a broad range of areas including new financing and disbursements of funds or credit extensions for advances on current accounts, renewals, extensions, delays or any other form of refinancing.

The objective of the measure is to stop the value of the dollar continuing to escalate and create more supply in the exchange market to complement the sale of reserves.