Digital Dollars for Logistics Companies in Argentina: How to Manage Surplus ARS
An Argentine company may be holding more ARS than it needs for its current operations.
The seemingly obvious choice would be to convert part of that surplus into dollars and keep those funds available until they are needed again.
For a company, however, it is not that simple.
Legal entities do not have unrestricted access to the foreign exchange market to purchase foreign currency for the purpose of accumulating foreign assets. These transactions require prior approval from the BCRA.
That leaves the finance team with a very practical question:
What should the company do with ARS it does not need today, but does not want to leave fully exposed to the peso either?
That is where the treasury challenge begins.
The problem is not having ARS. It is deciding what to do with the surplus.
A logistics company needs pesos to operate. Salaries, taxes, local suppliers and other day-to-day expenses all require liquidity in ARS.
But not all of that cash necessarily needs to be used immediately.
Part of it may not be needed for several weeks or even months. That creates a different decision: what to do with those surplus funds while they have no immediate operational use.
Keeping the entire amount in ARS also means keeping that part of the company’s treasury exposed to movements in the peso and to inflation.
The seemingly straightforward alternative would be to convert those pesos into dollars and hold them as reserves.
But for a legal entity, accessing the foreign exchange market to purchase foreign currency for the purpose of accumulating foreign assets is not unrestricted.
This does not mean that an Argentine company cannot hold dollars in a bank account.
The key distinction is whether a company can take surplus ARS and freely convert them into foreign currency simply to hold that currency as part of its treasury.
That is where the challenge lies.
The company needs ARS to run its local operations, but it also needs to decide how to manage capital it does not need right now.
Keeping everything in pesos is also a treasury decision
Doing nothing with surplus liquidity also has consequences.
If all available liquidity remains in ARS, that entire portion of the treasury remains exposed to the peso, even when the company knows it will not need those funds immediately.
For a company operating internationally, that decision can be particularly relevant.
Today, it may need ARS for local operations. Later, it may need liquidity to pay a supplier, an overseas partner or another international obligation.
That means the finance team needs to distinguish between two types of liquidity: the ARS the business needs today, and the surplus liquidity it can manage differently until it is needed again.
As we explored in our article on foreign trade and cross-border payments in Argentina’s logistics sector, moving cargo and moving money do not always happen on the same timeline.
Managing liquidity between one transaction and the next is part of that challenge too.
From surplus ARS to Digital Dollars
One way to manage that portion of liquidity is through Digital Dollars, meaning digital assets linked to the US dollar.
They are not dollars held in a bank account, and they do not change the rules of the foreign exchange market.
Their role within treasury management is different: they allow a company to manage part of its liquidity outside ARS while keeping those funds available for future business needs.
With YouHodler, the process can be straightforward.
1. Identify surplus ARS.
The company determines which portion of its liquidity is not immediately required for local operations.
2. Convert all or part of that liquidity.
The surplus can be converted into Digital Dollars or Digital Euros depending on the company’s treasury needs.
3. Keep the balance within the treasury.
The funds remain available in digital form, reducing that portion of the company’s direct exposure to the peso.
4. Use the funds when the business needs them.
The company can keep the balance, convert it back or use it for future payments and other international operations, where applicable.
The goal is not to convert every ARS the company holds. It is to separate different liquidity needs more effectively.
ARS for local operations. Digital Dollars or Digital Euros for the portion of liquidity the company wants to manage with greater flexibility.
For a company with international operations, those funds also do not need to remain disconnected from the rest of the business. They can stay available until the next treasury need arises.
Surplus liquidity is a treasury decision too
Regulatory requirements do not disappear simply because a company uses digital assets.
YouHodler does not turn a Digital Dollar into a bank-held US dollar, nor does it change the conditions under which a transaction can access the foreign exchange market.
It solves a different problem:
What to do with ARS liquidity the company does not need today.
With YouHodler, a company can keep the funds it needs for local operations in pesos, convert all or part of selected surplus liquidity into Digital Dollars or Digital Euros, and keep those funds available within its treasury until the business needs them again.
If your company holds surplus ARS and operates internationally, we can review how you currently manage that liquidity and identify which parts of the process could be simplified with YouHodler.
Request access to the YouHodler Business Beta: https://business-api.youhodler.com/es/