February 22, 2024

Brighton Journal

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Support for bookings, pricing error | Restrictions on imports and high exchange rate volatility

Support for bookings, pricing error |  Restrictions on imports and high exchange rate volatility

“River impounded, fishermen profit”, is a phrase that has been apt for the management of companies’ prices and stocks in recent days. New restrictions affecting imports were unleashed again, with strong financial uncertainty and a parallel appreciation of the dollar. A wave of speculative moves by price makers. This happens in a market environment in which various sectors continue to operate More salesIt guarantees excess, fuel and price irregularities.

Importers reduce deliveries or make them at higher prices The replacement cost of uncertainty is higher than it was weeks ago. This is coupled with highly accelerated inflationary dynamics, where it is difficult to have relevant price references. Hence, June end and regulatory price hikes define it July will also be complicated.

Among the increases planned for July is the first part of a rate hike for provided water service Aysa, 32 percent, which will be completed in October. In AMBA it will also affect about 40 percent hike in ticket Collaboration. On the other hand, there will be a new increase in July Advance payment 4 percent. Meanwhile, the Buenos Aires government approved a tariff hike Private schools 15 percent.


Page 12 He spoke to various leading businessmen and economists about the recent business climate Increased uncertainty about the capacity of the government To obtain financing in pesos and to accumulate international reserves in accordance with the agreement signed with the IMF. Two more pieces of information reinforce the already known effects of this type of episode: a new wave of uncertainty In an environment of very high inflation that was destroying price references and still good consumption performance.

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on the side Mass consumption, supermarket sources assure that the dynamics of uploads are not too different from what has been going on in recent days. However, there are specific circumstances where importers have reduced supplies. In the case Food, a product that is relatively less dependent on imported inputs, although there is use of packaging and laminated products, and some final items are sometimes brought in to complete the local offering. In Hygiene and cleanliness, there is a heavy weight of imported inputs. Restrictions on imports dim the price at which the company replenishes that stock.

From the metallurgical sector, “Importers of some inputs are sending prices in blue dollar because they say they have no other way to access foreign currency through MEP. The additional 15 per cent of imports authorized by the central bank to provide foreign currency is not sufficient to supply today’s market size compared to last year. So, there will be shortages and price increases because we’re all going to be speculating when and at what price we can buy dollars.” The paper and board industry also warned of supply issues.


“I believe so The uncertainty is given not so much by the dollar equivalent but by restrictions on imports, which removes the opportunity cost implication from firms. This leads to higher prices so as not to lose working capital,” explains Lorenzo Cicat Gravina, director of macroeconomic analysis at Equilibra consulting firm. Mario Galizzi, president of Apyme Santa Fe, points out that “there are products such as food and construction. They are very concentrated, and this environment is an abuse of a dominant position. Favorable to do”.

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According to economist Rodrigo Alvarez, “imports are growing at a very high rate, and it is now unknown whether the sectors that can import and can continue at the same rate. They protect their holdings almost disproportionately. Price hikes are more of a precautionary element. It is in a highly inflationary process where notes and relative prices are lost. Undoubtedly, this has had an impact and will continue to have an impact on prices.”