Mumbai, 21 Nov (Commoditiescontrol): In a significant move, the Argentine Government has made official a new valuation for the dollars earned through agricultural exports. This revised export dollar value will be calculated by combining fifty percent of the official dollar's value and fifty percent of the financial dollar's value. This measure will remain effective until the end of President Alberto Fernandez's term, which concludes on December 10th.
Under this new decree, as published today in the Official Gazette, exporters are required to bring fifty percent of their earnings into the country in foreign currency, transacting through the Free Exchange Market (MLC). For the remaining fifty percent, they must engage in buying and selling operations with negotiable securities, which are acquired with settlement in foreign currency and sold with a local currency settlement.
This decision marks a departure from the previous 70/30 "fernet" dollar framework. With the current values of an official dollar at 340 pesos and the financial dollar at 845 pesos, the export dollar now stands at 615 pesos.
One of the key motivations behind this policy change is to supply the processing industry with raw materials for producing flour, pellets, and soybean oil, thereby boosting the export of added-value products. However, a report from the Rosario Stock Exchange (BCR) notes a significant skew in the distribution of exports under this program: 99.7% of the Foreign Sales Affidavits within the program's framework are for soybean exports, with a mere 0.3% for oil and soybean by products.
Initially, the Export Increase Program (PIE) was designed to stimulate the sale of soy products, promote job creation, and ensure fair and accessible product supply from all regional economies. This program has since been expanded to encompass the entire export sector.
(By Commoditiescontrol Bureau; +91-9820130172)
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