November 22, 2022
Argentina may reinstate special exchange rate for soybean producers
Argentina may reinstate a special exchange rate for soybean producers to boost exports, as the country needs more grain export dollars to recover its reserves, Hellenic Shipping News reported.
A government source said the plan is being analysed when asked about the possibility of providing a differentiated exchange rate for the sector, but did not want to provide an estimate of what it might be.
A spokesman from Argentina's Economy Minister declined to comment about the plan.
According to data released this week by Argentina's agriculture secretariat, the country's farmers have only sold 72.2% of the 44 million tonnes of soybeans they produced during the 2021/22 harvest, compared to 74.2% last year during the same time period.
Sergio Massa, Argentina's Economy Minister, said a government-driven soybean export push in September helped the nation accumulate US$8.16 billion in hard currency reserves.
To make future payments to the International Monetary Fund and private creditors, stabilise the peso currency, and enable importers to purchase supplies, Argentina desperately needs reserves.
According to the most recent data available, Argentina's central bank reserves are currently at US$37.616 billion, down from US$43.785 billion when President Alberto Fernandez assumed office at the end of 2019.
- Hellenic Shipping News