The Central Bank of Argentina announced that its Board will allow non-resident investors to access the Free Exchange Market (Mercado Libre de Cambios, MLC) without prior central bank approval to repatriate new investments, subject to settlement and holding-period conditions. It also set out the parameters for a new issuance of Bonos para la Reconstrucción de una Argentina Libre (BOPREAL) to regularise certain legacy stocks of commercial and related-party liabilities. Access to the MLC for repatriation will be contingent on the original investment amount having been previously sold in the MLC, consistent with the treatment applied to financial flows linked to external financing. The change includes a minimum six-month holding period, to be verified by the financial institution executing the inflow transaction, which the central bank framed as a macroprudential safeguard against speculative inflows. BOPREAL Series 4 will have a three-year maturity, be US dollar-denominated and subscribable in Argentine pesos to address commercial debts incurred before 12 December 2023, as well as retained dividends and commercial and financial debt service with related parties; the interest rate will be set at the first auction, paid semi-annually, and principal repaid in a single payment at maturity. The central bank will initially approve issuance of up to USD 3bn, to be allotted on an adherence basis across successive auctions, with auction dates to be announced in the coming days via a BCRA Communication B. The package was positioned as part of Phase 3 of the economic programme and as complementary to earlier MLC flexibilisation covering interest payments on related-party financial debt and profit remittances for financial years starting from 1 January 2025.

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