Methods of Payment

Letters of credit (L/Cs) may be used to pay for U.S. exports to Argentina. A number of banks in Argentina open letters of credit once the bank has approved a line of credit for the Argentine importer.

Another payment option may be direct payment from the Argentine importer’s overseas bank account. Bank drafts and documentary collections are also of common use. While they do help safeguard the U.S. exporter’s title to goods until payment has been received, all credit and country risk remains with the exporter. There is no obligation for the bank to cover these risks. However, documentary collections are less costly than letters of credit and, where the exporter is comfortable with these risks, they offer a practical and efficient solution, particularly for Argentine subsidiaries of U.S. companies.

A vast majority of sales to Argentine importers are currently performed on open accounts. As a result of the pandemic, small and medium-sized Argentine companies across the board are experiencing liquidity challenges, which impact their ability to innovate and upgrade production lines. Open account sales generally take place between small and medium-sized firms. U.S. exporters should consider open account payment terms only if they have a great deal of trust in the local importer and feel confident in the client’s ability and willingness to pay.

While the financing tools offered by the United States Export-Import Bank (EXIM) are a good option for U.S. exporters globally, EXIM is limited in the offerings that it can provide for the Argentine market due to economic uncertainty.

For more information on U.S. EXIM Bank tools, contact the U.S. Commercial Service Argentina at Office.Buenosaires@trade.gov or visit www.exim.gov/tools-for-exporters/country-limitation-schedule and be sure to read the “Notes: 13” section.

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide and consult these sites:

U.S. Export-Import Bank (English)
United States Trade Representative information site on Argentina (English)

Banking Systems

Argentina’s Central Bank (BCRA) is the implementing authority and the regulatory body which issues standards and oversees activities of financial institutions. To operate in Argentina, foreign banks must register with the BCRA and obtain appropriate authorization prior to engaging in banking activities in the country. Furthermore, there are minimum capital requirements for these entities to be allowed to do business.

Foreign Exchange Controls

The BCRA is the regulatory body that oversees foreign exchange acquisition for import-related transactions. For more information on how the foreign exchange market operates currently in Argentina, please refer to the section “Access the Foreign Exchange Market” in page 21.

U.S. Banks and Local Correspondent Banks

There are currently no U.S. banks operating in Argentina’s retail segment. However, American Express Bank, Bank of America, Citibank, and J.P. Morgan Chase offer financial services to government and corporate clients in Argentina. To obtain a list of Argentine commercial banks with offices in the United States or banks operating in Argentina, please review the BCRA website

To access Argentina’s ICS section on financing, visit the U.S. Department of State Investment Climate Statement. website.