Argentina seeks to encourage regional economies with a better exchange rate

Argentina will seek to encourage exports from regional economies by applying a special exchange rate for the sector, which also aims to strengthen the central bank’s reserves, Economy Minister Sergio Massa said on Saturday.

“To recover the competitiveness that the drought and frost took away from us, we are going to implement export incentive schemes, similar to soybeans with the regional economies, starting with wine”, Massa said during a breakfast held by the Argentine Wine Confederation (Coviar).

Argentina implemented in September and December 2022 an increase in the income of its currencies, offering a differentiated exchange rate to encourage the liquidation of soybean producers.

“Thus, from April 1, we have to have more Argentine wine in the world, with the exchange competitiveness that the State provides, and at the same time strengthen reserves”, he pointed out, without elaborating on the measure.

The South American country is the tenth largest world exporter of still wines and musts, with exports that last year totaled US$ 997.4 million, according to data from the Fundación Agropecuaria para el Desarrollo de Argentina.

A severe and long drought hits the Argentine countryside, one of the world’s largest food producers.

Source: Reuters