Monday, December 11, 2023

The Government is analyzing several measures to encourage exports

The differential scheme has the unique feature of not only helping the monetary entity to accumulate reserves and protect the official exchange rate at $350 until the election, as promised by the Minister of Economy, Sergio Massa but also set aside 25% of settled funds to add to the Cash Offer with Settlement, working together throughout this month to keep parallel quotes at bay.

Export incentives

In this context that The Government is analyzing, for some time, increasing incentives for exports. The proven and most effective way to prevent the gap is to extend the 4-dollar soybean term. What happens is that, according to sources in the sector, explained to this medium, “in the drought, about 30 million tons are lost, so very little grain is obtained in the hands of the producer.”

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Along these lines, the same entrepreneur and agribusiness leader estimated that “3.5 million tons were sold in this phase and About 4 million tonnes will remain in the hands of producers until the April 2024 harvest.“. At the current price, about US$2 billion, what will happen is that it will be difficult to liquidate all the soybeans, considering the future obligations of the producers. Exporters have a small margin on soybeans they bought in this window and have not yet sold abroad.

“To maintain the official exchange rate, the Government will have to extend the soy dollar in October and it is likely that they will end up putting more restrictions on access to dollars in all channels, which will bring more gap and more inflation,” a representative. said this medium. economist who closely follows monetary issues. However Retaining the soy dollar is not the only option the Government is exploring.

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Incentives for other exportable products: mining?

At this time, the possibility of increasing incentives for other exportable products was also discussed. “Some sectors are under review,” the Government acknowledged. There are those who taught the regional economy, Although at the beginning of this month, Massa already ordered the elimination of restrictions for a series of crops such as: rice, peanuts, must, wine, cider, essential oils and tobacco, among others.

In the economic group nor will they reject it In this case, a more comprehensive step is taken and includes other export sectors, such as mining, with a time window. In any case, the margin is slim. The elections are approaching, the pressure on the parallel dollars is doubling and the exchange of peace is the key to not creating a new inflationary escalation.

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Nation World News Desk
Nation World News Desk
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