On October 6, the National Securities Commission (CNV in Spanish) updated the provisions of the foreign exchange market regarding the settlement of transactions with negotiable securities. The main objectives of the measure are to reduce the volatility of financial variables, decrease the volume of foreign currency demand and contain the impact of financial flows in Argentina.
The Resolution was adopted in coordination with the Central Bank and the Ministry of Economy. In this regard, the CNV pointed out that “it establishes a limit of 50 thousand nominal weekly amounts for the sale of negotiable securities denominated in dollars and issued under local law with settlement in foreign currency, in the PPT (priority, price, time) segment”.
In addition, the CNV stated that “orders may only be placed to enter into transactions with negotiable securities with settlement in foreign currency or to transfer negotiable securities from or to foreign depositories” under a series of conditions. Among these limitations, it is worth mentioning that in the month before and the month after the transaction, no sales of marketable securities in dollars (issued by Argentina under local law, with settlement in foreign currency, in the PPT segment) shall be made.