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Dollar clampdown: new restrictions on SGR investments in foreign currency

Dollar clampdown: new restrictions on SGR investments in foreign currency
Dollar clampdown: new restrictions on SGR investments in foreign currency

According to the regulation, the measure seeks to “consolidate prudent management of the exchange market and reduce the volatility of financial variables in the current context.”

SGRs are prohibited from making investments in foreign currency from July 1, 2024 to December 31, 2024.

Through Resolution 44/2024 of the Ministry of Economy and the Secretariat of Small Businesses, the regulations were modified regulates the investments that Reciprocal Guarantee Companies (SGR) can make with their Risk Funds. SGRs are entities that provide guarantees to small and medium-sized enterprises (SMEs) to facilitate their access to credit. These companies manage a Risk Fund that is invested in different financial instruments.

The main changes

  • SGRs are prohibited from making investments in foreign currency from July 1, 2024 to December 31, 2024.
  • The period that SGRs have to invest funds in foreign currency deposited in client accounts is reduced from 15 to 3 days.

The official text clarifies that funds in foreign currency They can only be used for investments and/or transactions authorized by regulations., such as operations in the capital market, receipt of debts and/or liquidation of securities to cover guarantees. Likewise, the regulations increase by 50% the limits provided for investments in instruments permitted by the regulations

Fundamentals of measurement

According to the norm, the measure seeks “consolidate prudent management of the exchange market and reduce the volatility of financial variables in the current context“.

Likewise, remember that it is part of national policies that promote financial stability and the strengthening of international reserves.

The text concludes with the decision to once again extend the validity of the Transitional Provision until December 31, 2024, specifying the limitations and conditions that will continue to be in force for SGR investments during that period.

Source: Ambito

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