Argentina's Central Bank has launched four administrative probes against exchange houses for irregular operations exceeding US$1.190 million in 2022 and 2023. Investigations uncovered dollar loans to low-income individuals and potential diversions to the informal market. The probe involves the Financial Information Unit and federal courts.
Argentina's Central Bank (BCRA) has started administrative investigations into potential irregularities in the purchase and resale of official-rate dollars during 2022 and 2023, under Alberto Fernández's government. The total volume under scrutiny exceeds US$1.190 million, per probes against four exchange houses and agencies.
These entities allegedly engaged in a scheme to exploit the exchange gap, which surpassed 80% between the official rate and parallel quotes amid strict currency access controls. As businesses and hospitals struggled with dollar shortages, buying low and reselling in the informal market yielded substantial profits.
Probes point to a 'rulo'-like mechanism diverting official dollars to parallel circuits. One firm handled about US$466 million, another US$474 million, and a third US$251 million, sourced initially from banks and the BCRA itself. Notably, one exchange house loaned nearly US$10 million to 53 individuals from February to April 2023, with amounts up to US$300,000 each.
Many recipients were low-income taxpayers or AUH beneficiaries, with incomes mismatched to the sums; some shared fiscal addresses. These unauthorized 'loans' saw funds withdrawn in cash, repayable in 'cash dollars'. The BCRA estimates US$8.3 million in profits from this segment alone, due to the exchange spread.
The probe expanded via the Financial Information Unit (UIF) and the Economic Crime and Money Laundering Prosecutor's Office (Procelac), referring the case to federal judge María Servini over fund origin concerns. Over 90% of transactions were cash-based, obscuring traceability. Summaries target exchange houses, not banks directly, and the firms reject claims, calling procedures invalid. Outcomes may include penalties or closures, underscoring past currency market flaws.
