Demonetization, Climate and Doubts: Reasons for Stopping Official Action to Add Dollars

The soybean dollar window is a key tool to reverse the hemorrhaging of international reserves hit by the central bank (BCRA) this year. It closed with a slam after the blue dollar and financial prices skyrocketed in economics.

Explanations among actors on the reasons for the suspension of the Export Increment Program (PIE) implemented by Economy Minister Sergio Massa differed depending on the counter attended. However, sources agree that a slow normalization of operations will begin tomorrow.

Today, the blue dollar and financial prices warmed up again After resigning at Casa Rosada, despite versions and official approvals of a possible eviction at the Ministry of Economy.

They said in the Ministry of Economy Nation Cereal companies stalled liquidation after Syngenta’s former CEO and former head of presidential advisers, Antonio Aragre, leaked that he would replace Massa. At the Palacio de Hacienda they noted that Aragre was talking about a devaluation of the official dollar and an exchange rate. Versions about the doubling already came out a few weeks ago from the Casa Rosada, and had to be denied from the Ministry of Economy, where they rejected this option and sudden demonetization.

“Cereal companies have stopped liquidation due to Aragrin’s proposal for a 60% devaluation and split. Will resume tomorrow. At 1:00 pm today they have already given the schedule for tomorrow and Friday.They said on the fifth floor of the Palacio de Hacienda, where they were not worried about the lack of activities called CAM9.

however, Small grains do not recognize that reason. On the other hand, regarding the implementation of Decree 194/23 of the agricultural dollar (soy), companies have already entered foreign currency for 1,500 million US dollars since the beginning of the month, of which 1,000 million US dollars correspond. soybean dollar, and advance financing and export developments.

They also clarified that this is due to the commercialization of soybeans “It has been delayed for various reasons, but, above all, due to climate issues, the soybean procurement program and the registration of export contracts for soybeans and derivative products are still active, and the companies will work until May 31. Established in the aforementioned decree.

They pointed out how in economics: “Starting tomorrow, soybean marketing will gradually return to normal.”

Meanwhile, prior to this media consultation, near Aragre, they did not respect the versions from the Ministry of Economy about its economic plan or the reasons why the Agricultural Dollar suddenly stopped its operations.

In the market, producers are not selling much of the new crop because they expect higher prices, such as $110,000 or $120,000 per ton. Meanwhile, exporters are offering a value of around $100,000 per tonne and only in a few cases reach $104,000 or $105,000 per tonne.

“The central bank ended its participation today with a sale of US$197 million To meet market needs”, wrote PR expert Gustavo Quintana, who confirmed that soybeans did not record dollar sales in the third round of the week. “The red of the PCRA month is now 244 million US dollars and the year is 3,222 million dollars,” he clarified.

In an environment of accelerating inflation, the data for March was 7.7%; Due to the BCRA reserve deficit (estimated to be around USD 2 billion net) and growing political uncertainty, strong reports of Massa’s withdrawal unleashed in the last few hours boosted the blue dollar and fund prices. Prices..

“The resignation of Antonio Aragre, rumored to replace Massa at the Economy Ministry, has caused concern in the market and may have been one of the triggers for CCL’s 3.9% rise overnight. Dollar futures TEAs are up more than 200% in August, while globals are down more than 3%. In addition, the IMF has evaluated the possibility of accelerating the official exchange rate before making the next monetary transfer,” explained Martin Massa. Senior Financial Advisor of Hare Capital.

In this context, Eduardo de Pedro, the Minister of the Interior and very close to Cristina Kirchner, recognized Massa as the head of the economy and questioned the presence of “officials who do not work” in the government. Alberto Fernandez Vice President About Administration “Massa will stay until the end because the end is when Massa leaves”Malena Calmarini, president of AySA and wife of the Minister of Economy, said after the rumors were unleashed from Casa Rosada.

This was on February 6, three months after Aragre’s appointment was officially announced Yesterday afternoon he announced his resignation from the executive committee. On Twitter, he justified the decision “For the purpose of suppressing any activity that may distort the markets by following the spread of rumours,” And added: “I take this opportunity to thank the President for giving me this position and he knows he can count on me for anything he needs.”

“Dear friend Antonio Aracre, thank you for your valuable contribution to our government. I know we both dream of an honest country and we will continue to work to achieve it”, was Fernandez’s reply.

Crosses between the Casa Rosada and the Ministry of Economy extended to the Central Bank (PCRA) headed by Miguel Pesce, with whom Massa had a strained relationship for some time. The third edition of Soybean Dollar got off to a slow start. In the BCRA, it was noted that the opening of an account specifically for operation was due to the idea of ​​-economy-. Dollar attached. They pointed out that it needs further clarifications from BCRA.

On the other hand, they pointed out in the Ministry of Economy The central government has been slow to give a response linked to interest rates After the inflation data for March (7.2% was the rise of the center, it decreased).

After the confusion created by the cross-versions, the Treasury is already working on renegotiating the deal with the International Monetary Fund (IMF). Despite the fact that one of the working options is changing the delivery schedule, they said nation, Nothing is defined yet, nor are there any figures. “We are looking at all the numbers with the IMF. For now the impact of the drought is a A game changer”, They closed.