Argentina’s plan to increase its foreign exchange reserves by encouraging soybean exports, which will be announced on Wednesday, will take effect next Saturday and will run until May 24, a government source said.
The measure, known locally as the “soybean dollar”, will seek to accelerate sales of the oilseed by offering farmers a higher exchange rate than the official one -currently 210 pesos per dollar-, at a time when the Government seeks to increase its reserves to deal with a complex economic crisis.
“The agreement with the cereal companies (agro-exporters) to establish a guaranteed minimum settlement (will last) from April 8 to May 24”, the source told Reuters late on Tuesday.
The source, who asked not to be named, did not give details of the exchange rate the government is expected to offer to boost sales.
At the end of last year, in the second of the “soybean dollar” plans already launched by Argentina, the exchange rate offered was 230 pesos per dollar.
It is expected that the inflow of foreign currency will alleviate the situation of the battered Argentine economy, although it will hardly be able to alleviate the negative effects of a historic drought in the country.
The Government has not yet published a harvest estimate for the current 2022/23 campaign, but for the Buenos Aires Grain Exchange, soybean production will be just 25 million tons, the worst result in 23 years.
Source: Reuters
Source: Gestion
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