CNV announces more restrictions for those moving into dollars

It is now forbidden in Argentina to sell more than 50,000 local dollar bonds weekly for foreign currency, the Comisión Nacional de Valores (CNV, the Argentine equivalent of the Securities and Exchange Commission in the United States) announced on Monday. 

Already published in the Official Gazette, the measure will apply to operations in the segment locally known as PPT.

The CNV thus restricted even more the operations for those seeking dollars via public bonds, giving further details as to the changes in regulations.

The resolution establishes that for the maximum limit of 50,000, the sales of negotiable obligations with a fixed yield payable in dollars and issued under local law in the PPT segment cannot be compensated with the purchases of the same assets paying in foreign currency.

The CNV explained that this resolution "was dictated in coordination with the Central Bank and the Economy Ministry," saying that the aim is "to contribute with a prudent administration of exchange markets, reducing the volatility of the variables and containing the impact of the oscillations of financial flows on the real economy."

In this way the commission, headed by Adrián Cosentino, has given another turn of the screw seeking to reduce the financial operations in dollars and thus take pressure off the exchange rate.

– TIMES/NA