Argentina soya growers will be able to avoid hoarding their harvests, waiting for a more favorable time for transactions. A special exchange rate for farmers was announced this week.
Argentina, one of the world’s largest exporters of soybeans and soya oil, has an annual inflation rate of 88%. There is a constant fear of devaluation of the national currency, so farmers often choose to stockpile their crops and wait for a better exchange rate.
This week, a stimulus measure was announced and will last until 30 December. Until now, soya products could be sold at the tightly controlled official exchange rate of around 166 pesos to one US dollar. Farmers will now be charged a much higher rate of 230 pesos.
A similar preferential “soy” tariff was applied in September when the country earned almost €8 billion from the sale of soybeans. The country’s sales of soya beans amounted to USD 8 million.
Argentina introduced a series of exchange control measures in 2019 to prevent dollars from leaving the country and to increase foreign exchange reserves. Argentines do not trust their currency and many try to exchange pesos for dollars as quickly as possible.
According to the agreement with the International Monetary Fund (IMF) on more than 44 billion US dollar debt refinancing, Argentina must increase its international reserves and reduce the fiscal deficit.
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