Content ID

336387

UPDATE 1-Argentina considers reinstating exchange rate for soybean sector -source

(Adds data, background, economy ministry no comment)

BUENOS AIRES, Nov 18 (Reuters) - Argentina is considering reinstating a special exchange rate for soybean producers in a bid to boost exports, a government source with knowledge of the plan told Reuters on Friday, as the country needs grains export dollars to replenish its reserves.

"It is under analysis," the source said when asked about the possibility of providing a differentiated exchange rate for the sector, but declined to give an estimate of what it would be.

A spokesman for the economy ministry declined to comment when asked by Reuters about the plan.

Argentine farmers have sold 72.2% of the 44 million tonnes of soybeans produced in the 2021/22 harvest, data from the agriculture secretariat showed this week, down from last year's rate of 74.2% during the same period.

A government-spurred soybean export push in September helped bring in some $8.16 billion in hard currency reserves for the country, according to Economy Minister Sergio Massa.

The reserves are sorely needed to make future payments to the International Monetary Fund and private creditors, buffer the peso currency and allow importers to buy supplies.

Argentina's central bank reserves stand at $37.616 billion compared to $43.785 billion when President Alberto Fernandez took office at the end of 2019, the latest data available shows. (Reporting by Eliana Raszewski; Editing by Anthony Esposito and Alexander Smith)

© Copyright Thomson Reuters 2022. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about
Loading...

Tip of the Day

Music is calming

AATF department logo Leave a weather monitor or radio turned on 24-7 – with the volume up – in your calving barn during calving season.

Talk in Marketing

Most Recent Poll

Will you have enough on-farm storage for harvest?

I just want to see the responses
45% (25 votes)
Yes
38% (21 votes)
No, it’s going to be a bin-buster
7% (4 votes)
Maybe, depending on yields
5% (3 votes)
No, I am looking at new bins or temporary storage
4% (2 votes)
Total votes: 55
Thank you for voting.