Argentina’s central bank has finally relaxed forex (currency exchange) regulations in favor of local IT companies, allowing service exporters to buy foreign currency at the official exchange rate.
The banking regulator has also freed independent professionals working remotely for foreign companies from exchanging their salaries paid in dollars.
The news comes a month later suspicions have arisen that local IT companies could place more of their export earnings in bank accounts abroad instead of repatriating them to Argentina.
Previous regulations required service exporters to convert all their greenbacks into Argentine pesos on the official exchange, which gave them 106 pesos for 1 US dollar, while the parallel exchange gave 205 pesos. This large difference between the official exchange rate and the parallel exchange rate forced many freelancers to abandon their local employers for a position with a foreign company that paid in US dollars.
Such a practice dealt a devastating blow to the country’s economy, which was already badly hit by the volatility of the foreign exchange market and soaring inflation.
Additionally, unreported revenue from tech exporters topped US$2.2 billion, according to Bloomberg.
“The benefit extends to companies in the sector who will have unlimited access to foreign currency for a percentage of the increase in foreign sales they achieve this year compared to 2021”, reported Xinhuaciting a statement from the regulator.