On August 28, the Executive branch introduced a series of economic measures with the aim of stemming the devaluation of the peso, the flight of assets and the drop in Central Bank reserves. One of the proposals presented by Finance Minister Hernán Lacunza was to send to Congress a bill on the voluntary extension of debt repayment periods under local jurisdiction. However, this was suspended days later over a lack of consensus with the opposition, and as such Lacunza’s scheduled visit to the Senate to discuss the new regulations was also cancelled. In the coming weeks, the ruling party will seek to generate political consensus with the other blocs before presenting the initiative.

Meanwhile, on August 30, the Central Bank of the Nation (BCRA) announced, through Communiqué A678, that financial institutions will need to have prior authorization to be able to transfer profits abroad. This was followed, through the Decree 609/2019 and Communiqué A 6770, with a series of measures to regulate the exchange rate regime: new rules on exports of goods and services, on foreign transfers and on access to the foreign exchange market.

Among the new provisions, ones worth highlighting are that exporters must sell the foreign currency resulting from their exports in the local market within a maximum of 5 working days after collection or 180 days after the shipment permit (15 days for commodities); that there will be no restrictions on the import or payment of debts when due; and that companies will not be able to buy dollars in order to simply amass this currency.