Tuesday, August 9, 2022

Reserves: Part of cabinet proposes option to speed up divestment and liquidation for tourism

The second option considers an amendment only for Argentine tourists who travel, as it would change the mode of payment of the summary, which is based on the official exchange rate and a surcharge (30% PAÍS tax plus 45% advance income)” Instead of being upset. , must be paid directly in dollars, which would mean that the individual allocates their own dollars to cancel the account or they must purchase them through a financial operation at a higher exchange rate than the one so far applied. is with. Beyond implementation, both options indicate an increase in the exchange rate for Argentines who decide to travel abroad.

According to the latest data published by the central bank, as of May 2022, US$ 2,207 million had gone out for “travel and other card payments”, almost the same amount that was allocated for the same item throughout 2021. (about $2.3 billion)

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liquidation

To encourage the entry of the dollar, the proposal presented to the leadership of the executive power details three options. First, a strong temporary decline in withholding, which in practice improves the exchange rate at which exports are disturbed in the agro-industrial complex. This option, recognizes one of the initiative’s authors, has little political viability.

Another possibility would be to recognize a “partial” differentiated dollar for exports through a mechanism that allows producers to collect 50% of what is exported in dollars, which can then be exchanged financially with the MEP exchange rate. can be sold in the market. The third option considers the central bank issuing bills that are tied to an exchange rate that cannot be traded in the secondary market, something that would work similarly to the futures market, but would allow it to be devalued.

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All these options reaching the desks of Fernandez and Batakis, among other important figures in the cabinet, were rejected at different times by the central bank. In fact, sources in the Monetary Authority on Sunday night assured that “BCRA is not working on any exchange rate sharing plan”.

“It should be expected that as of this week the additional pressure recorded in recent weeks on the market will begin to ease,” he said, adding that he clarified that BCRA “intends to complete” the production process. Regulatory rules based on resolving unintended consequences affecting

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