Argentina plans to restore exchange rate for soybean sector – source

Adds data, context, from the Ministry of the Economy no comment

BUENOS AIRES, November 18 (Reuters) – Argentina plans to reinstate a special exchange rate for soybean growers in a bid to boost exports, a government source familiar with the plan told Reuters on Friday, as the country needs grain export dollars. to replenish its reserves.

“It is being analyzed,” said the source 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 on the plan when interviewed by Reuters.

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

A surge in soybean exports encouraged by the government in September helped bring some $8.16 billion in hard currency reserves to the country, according to Economy Minister Sergio Massa.

Reserves are essential to make future payments to the International Monetary Fund and to private creditors, to amortize the currency of the peso and to allow importers to obtain supplies.

Argentina’s central bank reserves stand at $37.616 billion, up from $43.785 billion when President Alberto Fernandez took office at the end of 2019, according to the latest available data.

(Reporting by Eliana Raszewski; Editing by Anthony Esposito and Alexander Smith)

((Isabel.Woodford@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.