Green obsession: economic agents seek to dollarize in the face of rampant inflation.

The imposition of a new twist on exchange controls increased the long list of parallel quotes that must be borne in mind if one wants to know a reference to the value of the dollar in the market.

As the months went by, and given the expectation of devaluation caused by the rise in parallel dollars, official entities began to participate more actively in these businesses to stop the increases, an initiative that also began to generate price gaps between these quotes.

Today they coexist several parallel dollars at the official exchange rate in Argentina.

1) Free dollar. The black market price is the most widespread, although it is not relevant in economic terms due to its low volume traded. The free dollar or “blue” is offered today at $ 176 and it is the most expensive of all, in this case, because it can be operated off the radar of the official records.

2) Counted with liqui. The parity of the “cash with settlement” is the result of dividing the price in pesos of a financial asset by its price in dollars and allows the funds to be credited to an account located abroad.

It is a formal and legal dollar, that is, they are declared operations, and the price variation of the implicit dollar depends on the asset used for the operation. For example, the dollar “counted with liqui” or Cable with Actions is now operated on a range of 173 to 174 pesos.

With the Bonar 30 in dollars with Argentine law (AL30) you get a “liqui” of 166 pesos in the Price-Time Priority list (PPT), that is, on the ByMA (Argentine Stock Exchanges and Markets) listing boards. This public security is the most intervened by the Central Bank with the sale of bonds to depress the price of the implicit dollar.

3) MEP Dollar. Like liqui, the MEP dollar or Stock Exchange arises from the parity between the prices in pesos and in dollars of the same financial asset, but in this case, the currencies are credited to an account in the local financial system and, therefore , it is a little cheaper than Cable.

A bond widely used to make MEP is the Bonar 30 in dollars with New York law (GD30), which yields a dollar of 166,50 pesos. The AL30 is also used, with a parity of 166.60 pesos.

For these operations runs the so-called “parking”, which is the number of days that an investor must keep the bonds purchased in his portfolio, before being able to sell them.

According to latest provisions, the National Securities Commission (CNV) implemented a two-day parking (until now it did not exist) for the acquisition of cash with settlement, from an instrument in dollars, for example the AL30D, the title most used by the BCRA to intervene the implicit price of the dollar.

The CNV also decided to reduce the parking (obligation to keep the securities in the portfolio) from three to two days to buy the dollar in cash with settlement through a local asset (for example the AL30). To buy MEP dollar there will be no modifications and the parking will remain valid for one business day.

4) Senebi dollar. This term began to popularize in the last hours, before the new controls of the CNV to dollarize in the Stock Market. The SENEBI (Bilateral Negotiation Segment)Unlike the PPT, it is a wheel parallel to the “screen dollar”, where buyers and sellers agree on a particular price for the transaction, independent of the one set by the market.

The minimum amount for this type of operation is one million pesos, about USD 6,000 and Without stopThat is why it is a segment to which companies that cannot access the dollar on the stock market appeal, where the limit is 50,000 nominal per week, equivalent to about USD 18,000, due to the new restrictions.

In SENEBI, the implicit price of the dollar (in immediate cash operations) is about $ 169.25 for cash with settlement through the AL30 bond, and $ 170.27 with the GD30 bond. Meanwhile, the dollar MEP resulted in $ 168.52 and $ 167.79, respectively.

In addition to the asset to be used, it must be taken into account that the parities of the MEP and the cash with liquidity vary according to the establishment of the operation at the counted immediately, 24 hours or 48 hours.

5) Bitcoin dollar. The purchase and sale of crypto assets has an added interest in the context of exchange control in Argentina. They are values ​​to which pesos can be converted without a limit on the amount. As in the “counted with liqui”, the cryptocurrencies They are listed in dollars abroad and in pesos in the local market; today the parity is about $172 per dollar.

Through operations with a cryptocurrency of the type “Stablecoin” called DAI, which aims to maintain a stable price that follows the dollar, pesos can be exchanged for dollars at a price of 175 pesos.

An atomized official market

In addition to these “parallel” quotes for the dollar, there are many others due to segmentation in the official circuit.

6) Wholesale dollar. It is the one that governs foreign trade operations, it is traded 96,16 pesos. The Central Bank also operates in this place, which in the last eight months accumulated close to USD 7,500 from net purchases.

7) “Solidarity” dollar. The retail dollar amounts to $167,45 for the application of the PAIS tax and the perception of Profits, plus the commission received by the banks for the intermediation. For consumptions with card for goods and services abroad this dollar value also applies.

There are also different commercial exchange rates, a consequence of sectoral taxes for both exporting and importing. To mention the most relevant:

8) Soy Dollar. The soybean in Argentina has a price intervened by an export duty of 33% that is applied on the FOB value of the oilseed and that results in $64,43 for every dollar exported.

For every dollar of soybeans sold abroad, the exporter keeps $ 64.43, which is the official dollar less withholdings.  EFE / Cézaro De Luca / Archive
For every dollar of soybeans sold abroad, the exporter keeps $ 64.43, which is the official dollar less withholdings. EFE / Cézaro De Luca / Archive

9) Soy derivatives. The main export products of Argentina are those derived from soybeans such as flours, oils and residues, whose withholdings are 31%, with one dollar received by the exporter of 66,35 pesos.

10) Cereal dollar. Other relevant crops, such as wheat and corn, the export duty amounts to 12%, with an exchange rate fixed for these operations of 84,62 pesos.

11) Cotton dollar. Currently the export of cotton products and by-products, suffer a retention of income due to payment of rights to the export 5% of the amount traded, about $ 95.35 per dollar that enters from abroad.

12) Dollar meat. Sales abroad of this item are subject to a withholding of 9% in the case of beef cuts, and 5% for pigs, which results in an exchange rate of $ 87.51 and $ 91.35 per dollar, respectively.

13) Dead Cow Dollar. Decree 448 of May 18, 2020 established that the “Creole barrel” of oil pays withholdings when the international price of Brent crude is above UDSD 45. Now it operates close to USD 75 a barrel. since hydrocarbon exports are taxed at an 8% rate, which results in one dollar of 88,47 pesos.

14) Milk dollar. In the case of dairy, an activity that has been going through a serious crisis throughout its chain for some time, the withholding rates of 9% are maintained on exports of powdered milk (with an exchange rate for the exporter of $87,51), but also a rate of 4.5% was set for fluid milks, cheeses, whey and butter, products per FOB dollar, which leaves one dollar of 91,83 pesos.

15) Dollar peanuts. Confectionery and split peanut exports are taxed at 4.5% as export duties, which imply an exchange rate of $91,83 for these businesses

16) Rice Dollar. This cereal with various industrial processes, always presented in containers with a content equal to or less than two kilos, has aliquots of 5%, 4.5% and 3 percent. In other words, they are received between 91.35 to 93.28 pesos per dollar traded.

17) Dollar loans: In the case of products obtained from the production of animals such as goat or sheep, the export of so-called “combed wool” receives an aliquot of 3 percent. In this case, the exporter receives $93,28 per dollar.

18) Dollar came. In the case of wine, until the last day of 2020 this product paid $ 3 for every dollar exported and from this year it has been paying a fixed rate of 4.5%, which is equivalent to one dollar of $91,83 for the exporter.

19) Importing dollar. Until December 31, 2021, a statistical rate of 3% applicable to final import destinations for consumption was extended. This tax has some caps and also a series of exceptions, especially to the exchange of goods within Mercosur. Therefore, with this extra cost, the dollar to import goods is $99,04, about three pesos more expensive than the wholesaler.

20) Netflix (o Tinder). The PAIS Tax on digital services such as Netflix, Spotify and similar is 8% and not 30%, with which, with the withholding of 35% on account of Profits just imposed, these consumptions have their own particular exchange rate, of 141,78 pesos.

KEEP READING:

What is the “Senebi dollar”, the new exchange rate that appeared with the tightening of exchange controls
New controls on the dollar: the market expects greater pressure on the free price and a greater exchange gap