Argentina Modifies Reporting for Credit Card Purchases Abroad; Mexico Faces Banking Risks Due to US Tariffs

Argentina has modified the reporting requirements for credit card purchases made abroad, following a 541% increase in the use of Argentine credit cards in Chile in January 2025. The measure, formalized by General Decree 5662/2025, aims to facilitate tax compliance and provide relevant information to the Revenue and Customs Control Agency (Arca). Banks must now report foreign purchases made with credit, purchase, and debit cards issued in Argentina, starting in July 2025. Arca has also specified restrictions on certain goods entering Argentina from Chile, while allowing personal items like phones and laptops (one per person) if declared. Meanwhile, in Mexico, Fitch Ratings indicates that Mexican banks face increased credit risks and profit pressures due to the economic impact of US tariffs. Smaller banks with less diversified business models are particularly vulnerable, especially those exposed to industries like automotive, agriculture, and construction. Fitch expects Mexico's real GDP growth to be 0% in 2025 and 0.8% in 2026 due to these tariffs, and anticipates the central bank's interest rate to decrease to 8% by the end of 2025.