The Central Bank regulated the measures to stimulate the liquidation of foreign exchange from exporters

Stock Photo – Pedestrians walk in front of the facade of the central bank of Argentina in Buenos Aires, Argentina. Jan 8, 2018. REUTERS/Agustin Marcarian

The Board of Directors of the Central Bank of the Argentine Republic (BCRA) advanced today in the implementation of two of the measures announced yesterday by the Minister of Economy, Serge Massa, tending to facilitate and accelerate the entry of foreign currency into the country by exporters.

At its regular Thursday meeting, the Board approved the issuance of a Letter in Dollars, “aimed at stimulating the entry of external funds for pre-financing of large exporters”, the entity said in a statement. The currencies entered through this mechanism, explained the BCRA, will be deposited in the local financial system in a foreign currency account. The bank that receives them will be authorized to tender this new Letter in Dollars for the amount equivalent to that deposit.

Thus, companies that obtain pre-financing for their operations abroad can bring the dollars and leave them deposited in an account that will generate a return. According to the BCRA, this new Bill in Dollars “will be tendered periodically” and its interest rate “will be set in a tender as a spread on the SOFR rate”. The instrument will have a duration of 180 days with the possibility of early cancellation.

The BCRA Board of Directors also enabled access to sight accounts dollar linked to exporters who anticipate in more than thirty days the liquidation with respect to the term determined for each sector

Likewise, the Central also ordered another measure to favor the advance payment for export liquidation that Massa mentioned yesterday and that, adding different exporting sectors, will reach USD 5,000 in the next 60 days.

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“The Board of Directors of the BCRA also enabled access to accounts in sight dollar linked exporters who anticipate in more than thirty days the liquidation regarding the term determined for each sector”, explained the entity in the statement.

Massa said yesterday that the strengthening of the Central Bank’s reserves as “one of the four principles” that his management will have, along with “fiscal order, trade surplus and development with inclusion.”

In this framework, the minister explained: “Today we have agreed on an export advance scheme, with the value chains of fishing, agriculture, mining and others, which will enter in the next 60 days for a total of 5,000 million dollars, which will increase the reserves of the Central Bank”.

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On the arrival of these funds and on the relationship with the countryside, one of the sectors that generates the most foreign currency, he said: “We signed a commitment that commits us mutually, we had several meetings that began a few days ago. We are certain that the liquidation procedure will guarantee those USD 5 billion. With the field, we are going to have a positive and purposeful work agenda, with one of the most competitive sectors for Argentina”.

“In addition to the advancement of exports, we are making progress in the disbursement of 1.2 billion dollars with international organizations for current programs and in the next few days we will sign a new program with CAF with a disbursement of an additional 750 million dollars,” he added. In this sense, today Massa held a virtual meeting with the president of the Inter-American Development Bank (IDB), Mauricio Claver Carone, with whom the chances of accelerating the pending disbursements of loans in progress were analyzed. At the same time, according to the Ministry of Economy, the meeting considered “IDB support for Argentina’s economic stabilization plan”.

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Likewise, Massa also mentioned in his presentation yesterday other measures aimed at strengthening reserves: “We are evaluating 4 “Repo” offers to strengthen reserves and repurchase sovereign debt, 3 from international financial institutions and another from a sovereign fund, which we will be solving in the next 3 weeks. we already had today a first working meeting with the IMFproductive, in the context of the implementation of the program to continue with the planned disbursements and face the highlighted challenges”.


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