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In the midst of the heavy losses due to the drought, the Central Bank had to sell US$ 42 million

2023-03-06T23:42:32.616Z


The forecasts of agricultural export losses for this year already reach US$ 20,000 million. Foreign exchange losses due to the drought could reach US$ 20,000 million this year , which jeopardizes the accumulation of reserves by the Central Bank and even impacts the negotiations with the Monetary Fund to recalibrate the goals of the agreement. This Monday the Central Bank had to go out and sell foreign currency strongly to meet the needs of the market. In a single wheel he lost US$ 42 mi


Foreign exchange losses due to the drought could reach

US$ 20,000 million this year

, which jeopardizes the accumulation of reserves by the Central Bank and even impacts the negotiations with the Monetary Fund to recalibrate the goals of the agreement.

This Monday the Central Bank had to go out and sell foreign currency strongly to meet the needs of the market.

In a single wheel he lost

US$ 42 million.

Thus, the losses so far in March have already reached

US$ 77 million.

Calculations by the technical team of CREA's Agriculture Area indicate that Argentina is on track to lose more than

US$ 20,000 million

this year due to the fatal combo of drought and frost.

Based on the persistence of the drought so far in March, CREA recalculates the volume of the harvest for the year.

Now a volume of 31.1 million tons of soybeans and 38.6 million tons of corn are expected,

"figures that could eventually be revised downwards in the coming weeks," they warn.

The shortage of dollars for the Central is aggravated because

the drought is added to the collateral effect of the soybean dollar 2,

which in December anticipated sales that would otherwise have occurred during January and February, 

While in the first two months of 2022 the liquidation of CIARA/CEC exports reached

US$4,940 million current

, in the same period of 2023 the income of foreign currency through this channel shrank to US$1,570 million,

a decrease of almost US$3,400 million,

attributable to the seasonal change that triggered the “soybean dollar”.

Thus the drought spread to the coffers of the Central and forced to recalculate the goals of the agreement agreed with the IMF.

It had been established that March would close with net reserves of US$7.7 billion, but the truth is that today the reserves are around

US$4.5 billion.

So far this year,

the Central Bank has lost US$ 1,250 million

in assisting the market and preventing the price of the official dollar from skyrocketing.

Throughout February, the Central floor floored the dollar, which rose 5%, below inflation for the month, estimated to be above 6%.

In parallel, the blue dollar fell two pesos this Monday and closed at

$372, while the MEP dollar fell to $362 and the cash with liquidity remained at $372, along with the informal dollar.

Thus, so far this year,

the official dollar has risen 12.5%,

while inflation is set to end the first quarter at 20%.

Lack of inputs

At the same time, the Government steps on the exit of dollars and

withdraws the authorizations so that importers can enter merchandise

.

Next Wednesday, Minister Sergio Massa plans to meet with a group of industrialists from Córdoba. Gustavo del Boca, president of the Chamber of Metallurgical Industrialists of that province, told Clarín that despite promises they continue to have difficulties importing

inputs

"In the inputs to produce the problems continue.

Nothing has improved.

The power outage last week is largely due to the lack of maintenance due to lack of inputs. Next Wednesday we will have a meeting with Massa to evaluate alternatives for the industry to continue producing".

"For now we continue producing because we are solving the problems day by day.

But what we need is to have predictability.

We have to prioritize production and employment. The country is not solved with subsidies, but with work," said the Cordovan leader.

The lack of inputs has been hitting the industry in general, which in December 2022, the latest official data, had a decline of 1.2% compared to November.

AQ

look too

Debt swap: the list of all the bonds that enter into the operation with the banks

In February, annual inflation in Buenos Aires shot up to three digits: 103.1%

Source: clarin

All business articles on 2023-03-06

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