Argentina on Monday (November 28th) reinstated the so-called “soy dollar” to allow agribusiness entrepreneurs to settle their exports at an exchange rate of 230 pesos to the dollar, according to the rate published in the Official Gazette, with which the government hopes to raise a minimum of $3 billion.
The soybean dollar, valid until Dec. 30, is more attractive to exporters than the official wholesale rate, currently 165.59 pesos to the dollar, but implies a foreign exchange advance from the agricultural sector and an increase in non-monetary liabilities. of the Central Bank.
This incentive exchange scheme is part of the Export Enhancement Program that allowed in its first edition, last September, to repay more than 8 billion dollars and export almost 14 million tons of soybeans in less than a month, as recalled Economy Minister Sergio Massa last Friday. at the time of announcement.
The move also allowed Argentina to meet quarterly targets set by the International Monetary Fund (IMF).
Argentina must collect soybean export duties and collect foreign exchange to meet the targets set by the IMF.
Massa asserted last Friday that Argentina “will close the year meeting the target of 2.5%” of the primary deficit and “will close the year meeting the reserve accumulation target”, which are international commitments.
The regulation published on Monday authorizes the Ministry of Economy to issue ten-year dollar bonds to cover the capital gap created by this decree for the Central Bank.
The “soy dollar” generates a monetary emission to buy foreign currency that, according to a report from the management company SBS, could be between 18% and 20% of the monetary base in November, which will mean additional efforts to sterilize from Central Center. The bank, in a context of inflation of 88% per year and a high level of debt for the monetary institution.
Massa reached this agreement with the agro-industrial chambers, before which he admitted that they are “one of the protagonists in the process of accumulating reserves” and which promised to liquidate a minimum of 3 billion dollars.
However, rural groups were unhappy with the measure: “Soy dollar” shows the need for money. It is not a measure for the village; it’s a form of revenue collection,” Nicolás Pino, president of the Argentine Rural Society, told Continental radio station.
Under the rule published Monday, a portion of what the state receives in export fees will be earmarked to fund programs that serve regional economies and local value chains.
With information from efe
