Transferring funds to/from Argentina

Argentine Peso Solutions

At Cash Management Group, we offer a range of solutions to help businesses with transferring funds to and from Argentina. Our team of experts has been assisting corporate clients with cross-border treasury services since the capital controls were first implemented in 2011. We understand that currency controls present significant challenges for businesses that need to exchange US dollars for Argentine pesos or vice versa, which is why we work tirelessly to provide our clients with efficient and cost-effective solutions.

Currency controls present obstacles for businesses who need help transferring funds to or from Argentina. Cash Management Group at Canaccord Genuity is a leader in providing cross-border treasury services to businesses with operations in Argentina. We help organizations from a range of industries maximize value when they need to exchange US dollars for Argentine pesos or vice versa.

Current foreign exchange restrictions in Argentina limit the ability to buy or sell any currency, creating challenges for businesses with operations in the country. As a result, many companies have been sitting on cash in pesos which exposes them to risk of foreign exchange devaluation. With our help, clients have been able to manage this risk and move funds safely and efficiently across the border.

Our team has been actively assisting our corporate clients since capital controls were first implemented in 2011. Circumstances change quickly in Argentina, so the advice of an experienced team with established connections in the country is invaluable. Specifically, Cash Management Group provides treasury and risk management solutions to companies looking to move cash:

In the current financial climate, the Blue Chip Swap is an efficient, cost-effective way to fund your business in Argentina. It is among the only viable methods of repatriating funds, paying dividends, or meeting foreign debt obligations.

Blue Chip Swap

One of the tools we recommend to our clients is the Blue Chip Swap, which can help companies achieve a favorable return on their money. This method involves buying internationally-traded assets, typically securities of large, “blue chip” companies, in Argentina with pesos and then selling them, either in Argentina or abroad, for US dollars. The Blue Chip Swap rate can exceed the official exchange rate by as much as 100%, providing businesses with a significant advantage.

The Blue Chip Swap is a tool used by investors when there is a disparity in the exchange rate. A swap transaction involves an investor buying internationally-traded assets, usually securities of large, “blue chip” companies. In a northbound transaction, a person would buy securities with pesos in Argentina and then sell them, either in Argentina or abroad, for US dollars.

The Blue Chip Swap enables companies to achieve a favourable return on their money when compared with a typical money transfer service. The difference between the foreign exchange market and the Blue Chip Swap rate is known as "the spread".

Our team also provides northbound solutions for companies with pesos trapped in Argentina, looking for a way to transfer funds out of the country, as well as southbound solutions for companies transferring funds to Argentina and looking to maximize the number of pesos they receive on their exchange. With our established connections in Argentina and extensive experience navigating the country's complex currency controls, we can help our clients manage their exposure to the Argentine peso and move funds safely and efficiently across the border.

We have seen the Blue Chip Swap rate exceed the official exchange rate by as much as 100%. That is, for every peso you could get through the traditional foreign exchange market, you could get two through the Blue Chip Swap. Depending on market volatility, the spread has typically been between 30% and 60%.

We provide our services to international clients in Canada, USA, Australia, UK, and Europe. To see the current rates, at both the official and Blue Chip Swap rate, click here.

When evaluating options for cross-border currency controls, it's essential to consider both reputational and market risk. At Cash Management Group, we understand the risks and challenges involved in cross-border transactions and are committed to providing our clients with the most effective and reliable solutions. Whether you need help with the Blue Chip Swap or any other cross-border treasury service, our team is here to assist you. Contact us today to learn more about our services for transferring funds into and out of Argentina.

To find out more about the Blue Chip Swap, speak to one of our advisors today. If you would like help managing your exposure to the Argentine peso, do not hesitate to reach out to us.

Disclaimer: Canaccord Genuity Corp. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and Canadian Investor Protection Fund (CIPF). The comments and opinions expressed in this commentary are solely the work of the Cash Management Group and Andrew Johns.

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