Buenos Aires Herald 
The Central Bank (BCRA, for its Spanish initials) will loosen restrictions on who is able to access the dollar exchange circuit in the official and financial markets. The news was announced via a surprise communiqué on Tuesday and is part of the government’s intended goal to dismantle foreign exchange restrictions known as “cepo.”
The BCRA board will now allow people who received some form of state assistance during the pandemic or have partial subsidies for public utilities to access the foreign exchange market through bonds in foreign currency, i.e., purchase U.S. dollars in MLE and CCL operations.
The board also decided to shorten the wait period for companies to access the Free Exchange Market (MLC, for its Spanish initials) and obtain dollars to pay for imports, as well as raise the threshold of what those who export services must declare in the official market.
The BCRA justified the decision based on the fact that payments to imports, implemented since late 2023 through BOPREAL bonds, have allowed “the accumulation of international reserves and generated a commercial debt stock.” “Given that we’ve had better results than initially expected regarding the development of this program, the BCRA is now moving forward to normalize foreign commerce, allowing the reduction of contracted debts.”
What the removal of restrictions means
This partial removal of restrictions means that people benefited by the measure will be able to obtain mortgage loans in pesos and later access the MEP market to obtain U.S. dollars to pay for the property, given that the real estate market in Argentina operates entirely in foreign currency.
In the communiqué, the BCRA stated that import flow and the accumulated levels of commercial debt have begun normalizing “thanks to a transparent and foreseeable payment plan.” They added that, in the first semester of 2024, average monthly import payments operated through the MLC are now close to 100%.
Energy-linked goods are currently paid for in one payment. Pharmaceutical products, as well as those related to health care, fertilizers, phytosanitary products destined for local production, basic basket goods, and official imports made by small and medium-sized companies, have access to the foreign exchange market 30 days after customs registration.
Luxury goods and finished cars, on the other hand, are paid for after 120 days after registration.
