The secretariat of Agriculture, Livestock and fishing communicated on Tuesday operating guidelines for the closure of the Export Increase Program (PIE) which establishes a differential exchange rate of $200 per dollar for the soybean complex for September and ratified the conclusion of this scheme this Friday at 3:00 p.m.
through the Resolution 43/2022 published in the Official Gazette (BO), the portfolio dependent on the Ministry of Economy, detailed the “strict operating guidelines” for the last week of validity of the PIE, which will conclude with record foreign exchange settlement and volume of merchandise traded.
Among the main points, the document establishes that the Primary Grain settlements and Secondary Grain settlements whose date of “settlement of the operation” is between the date of entry into force of Decree 576/22 (September 5) and September 30, 2022, are covered by the PIE, to the extent that the date of issuance of the aforementioned settlements is not later than October 2, 2022.
In addition, it was established that the Sworn Declarations of Sale Abroad (DJVE) object of this Program may be registered until 11 a.m. on October 3, 2022“the respective rights must be canceled up to 48 hours after that date.”
On Friday the 30th, the export promotion program that we started on the 5th with all the sectors of the Argentine agribusiness chain will end.
– Sergio Massa (@SergioMassa) September 25, 2022
In turn, it was determined that the shipping permits for the products established in Annex I of Decree 576, which are not included under the scope of Law 21,453, made official within the framework of the Program, will have an extension of 60 days counted from expiration of the initial 30-day period.
Finally, it was ordered that the liquidation of foreign currency corresponding to the payment of the aforementioned operations may be arranged until 3:00 p.m. on September 30, 2022.
According to Agriculture, the PIE was created with the objective of both strengthen reserves of the Central Bank (BCRA) and “stimulate the generation of genuine income from the National Stateproduct of the export of merchandise with low incidence in the value chains of national supply, as well as to improve the income of the producers”.
Thus, “the provisional balance of the program establishes that the goal of US$ 5,000 million was exceeded in foreign exchange earnings with a total of 7,000 producers who joined and about 4,000 liquidated less than 100 tons, demonstrating their adherence in small and medium producers”
In this sense, the Buenos Aires Cereals Exchange (BCBA) reported this Tuesday that since the PIE began until this Monday, registered operations reached 14,279,387 tons.
The efforts of the public sector and the agribusiness sector are building a record that helps mobilize and value the work of our producers, contribute to the global food security agenda and consolidate our reserves to strengthen our economy. pic.twitter.com/qHbkXL0SMh
– Sergio Massa (@SergioMassa) September 24, 2022
Of that number, 9.9 million tons correspond to operations that were arranged after the measure and the remaining 4.4 million correspond to those operations that were operated after the measure, but were arranged before the start of it.
On the other hand, of the accumulated total, 12,571,094 tons correspond to operations with final destination, the BCBA concluded in its daily report.
Likewise, the Government’s initial expectation that there would be a liquidation of foreign currency of around US$ 5,000 million was exceeded, since on Friday the Chamber of the Oil Industry and the Cereal Exporters Center (Ciara-CEC) reported that US$ 6,000 million entered.
That is why the Minister of Economy, Serge Massawho announced and put the program into effect on September 5, remarked in recent days that “so far it has been a very important success both for the economic mobilization of our production as well as for the contribution to Argentine reserves and the agenda of global food security” on its official Twitter account.
Right there, Massa specified that “until Friday the 30th at 3:00 p.m., operations can be carried out according to slate values” and indicated that, “then, only the administrative procedures for said operations can be completed.”
Finally, the person in charge of the economic portfolio stressed: “We want to thank the support and work of the field to this measure throughout these weeks and invite them to work the remaining five days with the same commitment, transparency and professionalism. Friday at 7:00 p.m. We will make the final evaluation to tell Argentine society about the results”.
