Hacienda Virtual Realty Argentina - HVRA
Foreign
Exchange
In December 1989, the Argentine Government
lifted all exchange controls and adopted a single foreign exchange market, on
which the rate fluctuates based on supply and demand.
Previously, differential rates were in existence, as well as exchange controls,
with frequent changes in the related regulations. There is a forward exchange
market.
Effective April 1, 1991, the National Government passed a law declaring the
convertibility of the local currency in relation to the U.S. dollar ($1 = U$S
1 in terms of the "peso" adopted as the local currency effective January 1,
1992).
In this connection, the Argentine Central Bank has undertaken to maintain backing
for the currency, to be held in gold and freely available devised.
Private individuals may freely hold foreign currency, keep accounts in foreign
currency with local banks, collect interest in foreign currency, or sell property
against payment in foreign currency, but if they do so, they should be able
to justify its source, considering the exchange controls that have existed.