Argentina to revive 'soy dollar' FX rate until year-end, sources say
By Eliana Raszewski
BUENOS AIRES, Nov 25 (Reuters) - Argentina will
reestablish a preferential currency exchange for soybean exports
until the end of the year, economy ministry sources said on
Friday, looking to rev up exports of its top cash crop and bring
in much-needed dollars.
The government, which spurred huge soy exports in September
with the so-called "soy dollar" rate, has agreed a "floor" of
some $3 billion in exports with grains firms, the source added.
A second government source confirmed the special measure for
soybean sales.
Argentina is the world's top exporter of processed soy oil
and meal, but high inflation and tight capital controls have at
times led farmers to hold onto their crops as a hedge against
the local currency devaluing.
Argentina's central bank is looking to bolster its
international currency reserves, which have fallen sharply due
to uncertainty regarding the local peso currency amid high
inflation and financial difficulties.
During September, the central bank granted grains exporters
200 pesos for every dollar settled, considerably higher than the
then official rate of around 150 pesos per dollar. The official
rate is now 165 pesos.
"The September soybean dollar is reopened with an inflation
update," the source said about the measure, which will run from
next Monday until Dec. 31.
"The government's agreement with the grain companies (farm
export firms) has a guaranteed and signed floor of $3 billion,"
the source said.
The measure in September spurred almost $8 billion to enter
the country, of which around $5 billion remained as central bank
reserves.
"It is highly like that (a new edition of the 'soybean
dollar') would be from Monday, Nov. 28 until Dec. 31," one
source from the agro-export sector told Reuters.
None of the sources indicated what the exchange rate offered
to producers would be, although they said government authorities
would meet with the agro-export and productive sectors later on
Friday to explain more details.
"They notified us today so we could be in the announcement
(...) but we do not agree with this 'soybean dollar,' Carlos
Achetoni, president of the Argentine Agrarian Federation, one of
the main rural associations in the country, told Reuters, adding
he will not attend the meeting.
"You have to look for a single (exchange) parity," he said.
(Reporting by Eliana Raszewski; Writing by Adam Jourdan;
Editing by Daniel Wallis and Josie Kao)
Log In Required
Line of Credit Log In Required
