The Secretary of Industry, José Ignacio de Mendiguren, said on Monday that the application of a type of exchange rate of $200 per dollar for soybean exportsa was the result of a negotiation where “the entire chain has participated”, and highlighted that many actors in the sector “predicted that the income” of foreign currency would be greater than the US$ 5,000 million initially estimated.
“The entire chain has participated. Many entities collaborate, but sometimes they have internal problems that take a little energy out of them when they see the general problem. But yes, they have participated,” Mendiguren told Futurock radio.
In this sense, he explained that, prior to last night’s announcement by the Minister of Economy, Sergio Massa, there was “a meeting in the Belgrano Room of the Ministry of Economy where they were all sitting and they all reconfirmed” their intention to participate in the Program.
The Export Increase Programarranged through decree 576/2022 published this Monday in the Official Gazette, establishes “in an extraordinary and transitory manner” until September 30 an exchange rate of $200 per dollar for exports of soybeans and derivatives.
Also, the measure, designed to strengthen foreign exchange reserves, creates the Exporter Increase Fundwhich will receive a proportion of the proceeds obtained from the withholdings on liquidated soybeans and which, in addition to financing a non-contributory benefit through the National Social Security Administration (Anses) to the most vulnerable sectors, it will grant resources to “programs that stimulate the production and development of small and medium producers and regional economies.”
In this framework, De Mendiguren anticipated that “with these funds from regional economies, the idea is also to sit down (with the actors in the chain) so that we analyze which province or regions need more support and in what way.”
“The Liaison Table will be happy because the regional economies during the previous government had withholdings and this government took them away”added the official.
Likewise, De Mendiguren was optimistic about the amount of currency that will be liquidated with the initiative, and estimated that they could be even higher than the US$ 5,000 million that Massa forecast yesterday for this month.
Since @Economia_AR We announced a measure that will allow producers to liquidate foreign exchange for soybean exports at 200 pesos per dollar.
The program seeks to promote exports, improve the reality of producers, help regional economies and strengthen reserves. pic.twitter.com/Q4gXt36Zsi– Sergio Massa (@SergioMassa) September 5, 2022
“Many (of the actors in the chain) said that they also predicted that income was going to be higher and that there could be an avalanche of sales, literally from the cereal companies; and therefore, we estimate that those US$ 5,000 million could be even higher”, anticipated the secretary.
Meanwhile, regarding the funds directed to Anses, de Mendiguren pointed out that the Ministry of Economy will analyze the measures after “looking at the figures” obtained by this new exchange scheme.
In this regard, he stated that “The Government took, as a political decision, to go to a stabilization plan but maintaining the purchasing power of wages.”
“This is something very new in the stabilization plans because everyone always started by adjusting salaries and the accounts that have to do with social assistance,” the official considered.
Similarly, he clarified that one of the reasons why “soybeans and not other products” was chosen as the beneficiary of the new program was because it is not reflected in domestic market prices.
Meanwhile, regarding the economic situation, De Mendiguren affirmed that the Today’s measure is in line with the objective of “improving international reserves”.
“Three or four weeks ago we were in a very complex situation where practically everyone announced a redefinition of the debt in pesos and a dollar at $350 or $400 with a sharp devaluation; and in that scenario, the first stage was to be able to get out of the situation and stabilize, ”he indicated.
