Argentina launches new “soy dollar” and expects to raise US$ 3 billion by the end of the year

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The government of Argentina put into circulation, last Monday (28), the new “soy dollar”, aiming to encourage exports from the country’s agro-industrial complex.

With a quotation of 230 pesos per dollar, the idea is to attract US$ 3 billion until December 31st — the date on which the variation of the North American currency ceases to be in effect.

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The objective is to reinforce international reserves and prevent foreign currency outflows, in order to meet the targets agreed with the International Monetary Fund (IMF). The agency predicts that Argentina will close the year with net reserves above US$ 5.6 billion — at the moment, the South American country has around US$ 4 billion, according to the local newspaper. clarion🇧🇷

This is the third version of the soy dollar in 2022. The first attempt, organized in July by then Minister of Economy Silvana Batakis, set the exchange rate at 160 pesos per dollar, while the second, put into effect in September by current Minister Sérgio Massa, it was 200 pesos to the dollar.

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The currency variation is more attractive for exporters in relation to the official wholesale dollar, around 166 pesos per dollar at the current exchange rate.

“We see this new condition as an improvement that, even if temporary, will have a direct impact on the price of soybeans on the domestic market,” said Gustavo Idígoras, president of the Oil Industry Chamber and the Grain Exporters Center (Ciara-CEC) to country’s press.

“The decision to sell soybeans is always in the hands of the producer, and he will be the one who will decide when to sell, understanding that this time the exchange rate will only last until the end of December”.

Some rural organizations, however, believe that the measure does not favor the sector.

“Let’s not fool ourselves, the government doesn’t do this to favor the countryside, but because it’s the only way it has to raise dollars,” said Jorge Chemes, president of the Argentine Rural Confederations (CRA), one of the four entities of the Mesa de Enlace, group formed in 2008 to represent different fractions of the Argentine agro.

The entities, together, warn that, “since it is a measure for one month, it creates gaps that do not help, complicate and make commercial dynamics even more difficult”.

Nicolás Pino, head of Sociedade Rural, said: “The government continues to take measures for its own benefit and is not in line with what we producers want, which is a single exchange rate and receiving the international price of the product.”

The soy dollar is one of 15 variations of the US currency in force in Argentina. Check below for more information about the other quotes:

Source: CNN Brasil

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