BUENOS AIRES: Argentine Economy Minister Sergio Massa says there is a special exchange rate for the country’s soy producers.
He said that this is being done to encourage exports, shore up central bank reserves, and avoid currency depreciation.
Exporters of soy, the country’s top commodity, will be able to sell their shipments abroad at a rate of 200 Argentina pesos (RM6.40) per US dollar, a rate more lucrative than the official rate of 139 Argentine pesos (RM4.45) per dollar, not including taxes.
This measure “allows us to strengthen reserves, which is essential to overcome the stress that the economy has been suffering,” Massa said at a press conference Sunday with more than a dozen agriculture business leaders in attendance.
Soy exporters have agreed with the government to sell at least US$5bil (RM22.4bil) in September as well as US$1bil (RM4.48bil) in the first 72 hours of the measure, Massa said.
An emergency decree would be published to make the policy official, Massa said, adding that the exchange rate for exporters would return to normal in October.
Massa, who started about a month ago as the third economy minister since July, is seeking to reverse the months-long decline of cash reserves at the central bank. — Bloomberg