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Argentina Creates New Regulatory Body for Foreign Trade

The Argentine government published a decree on Monday that establishes the Unidad de Seguimiento y Trazabilidad de las Operaciones de Comercio Exterior (Tracking and Tracing of Foreign Trade Transactions Unit), which will monitor the flow of goods, services, and currency into and out of the country. According to Decree 2103/2014, the new agency will operate under Chief of the Cabinet of Ministers Jorge Capitanich, and will be made up of representatives from the Central Bank, the Economy Ministry, the AFIP tax bureau, the Financial Information Unit, the Bureau for Economic Crimes and Money Laundering (Procelac), and the National Securities Commission (CNV).

According to the government, the new agency is meant to “assure macroeconomic stability,” yet the decree also notes that it was created because of an increase in foreign trade as well as illegal operations like tax evasion. The government claims there have been 9,600 cases of suspected Criminal Foreign Exchange Regime violations. The regulatory body will monitor trade and currency flows in order to prevent tax evasion, especially by companies earning money on imports.

In recent months, tax employees have carried out a number of raids in Buenos Aires and across Argentina due to a prosperous black market for U.S. dollars. The informal market started to flourish in 2011, when the Kirchner administration made it difficult for Argentines to get dollars through legal means in response to the alarming decrease in international reserves. After a devaluation of the peso in January 2014, the “blue” dollar exploded.

Alejandro Vanoli, who took over as head of the Central Bank in October 2014, has been imposing measures to limit the fall in the Central Bank’s reserves, including raiding cuevas, the informal currency exchange houses, and arbolitos, people who sell dollars illegally on the street. At Tuesday’s Central Bank conference, Vanoli noted that Argentina’s reserves grew by $800 million in the last month and stressed that the government would continue to fight tax evasion and money laundering.

Any opinions expressed in this piece do not necessarily reflect those of Americas Quarterly or its publishers.
Tags: Criminal Foreign Exchange Regime, AFIP, Jorge Capitanich

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