Overview

• Through Communication A 8311 published on August 29, the BCRA barred banks from increasing their positive daily spot foreign-currency position on the last business day of each month compared with the prior day.
• The restriction takes effect immediately for this month-end and applies to banks’ spot transactions in the official FX market.
• Starting December 1, the net foreign-currency position rule will shift to daily compliance rather than a monthly metric for the negative PGN.
• Also from December 1, any negative daily spot position may not exceed 30% of a bank’s previous-month Responsabilidad Patrimonial Computable (RPC).
• The BCRA says overall PGN caps are unchanged and frames the step as a way to reduce volatility around futures settlements and ease pressure on the peso, while analysts warn it limits banks’ month-end hedging capacity.