After dollar jump, government restricts access to financial dollars
The government made this decision after a week in which the value of the informal and financial dollars recorded jumps that exceeded double digits in a few days. Financial dollars (the blue-chip swap rate and the MEP dollar) also recorded increases between 6.4% and 7.7% between Monday and Wednesday. The changes published today by the CNV are:Those who have short-term loans in force (taken or granted) will not be able to purchase financial dollars. In the Argentine market short-term loans that use financial assets as collateral are called “cauciones,” which operate similarly to margin loans. Some shareholders, managers, and employees of financial brokers may not buy and sell bonds in the same financial market in which the Central Bank intervenes by buying and selling bonds to control the value of financial dollars.
Source:Bueno Aires Herald
May 02, 2023 00:33 UTC
Bolsonaro attends Brazil's biggest farm fair
Former right-wing President Jair Bolsonaro stole the show on Monday at Brazil’s largest agribusiness fair where he was acclaimed by supporters from the country’s strong farm sector. Bolsonaro criticized the decision by Lula to recognize new Indigenous reservations, a constant complaint by farmers in Brazil’s expanding agricultural frontier. The deep-pocketed and powerful farm sector was a major supporter of Bolsonaro’s 2018 election. Bolsonaro faces legal risks that could ban him from running in the 2026 election. Agriculture Minister Carlos Favaro wished the farmers success and said he looked forward to attending next year.
Source:Bueno Aires Herald
May 02, 2023 00:27 UTC
Paraguay's conservatives score big election win
Paraguayan conservative economist Santiago Peña won the country’s presidential election on Sunday, tightening the ruling Colorado Party’s political grip in the country. “Thank you for this Colorado victory, thank you for this Paraguayan victory,” Peña said in a speech. Colorado and right-wing party candidates also performed strongly in congressional elections and governor races, with some provinces recording a historic Colorado majority over opposition rivals. “But not voting makes me part of the problem.”The Colorado Party has dominated politics in the landlocked South American country since the 1950s. Taiwan and ChinaThe build-up to the election has been dominated by the economy, corruption allegations and the candidates’ views on Taiwan.
Source:Bueno Aires Herald
May 01, 2023 12:32 UTC
Paraguayans head to the polls in decisive elections
Paraguayan voters head to the polls today to elect its next president, Congress representatives, governors, and local authorities. The Colorado Party has ruled Paraguay for the past seven decades, with an exception between 2008 and 2013, when leftist Fernando Lugo was in power. The Herald spoke to Magdalena Lopez, the coordinator of the Social Studies on Paraguay Research Group at the University of Buenos Aires. The Concertation coalition includes 23 parties and two movements united in opposition to the Colorado Party. 13 out of 17 departments in the country are run by governors belonging to the Colorado Party.
Source:Bueno Aires Herald
April 30, 2023 22:58 UTC
Government fines Coca-Cola and Danone for flouting price agreement
Argentina’s Trade Secretariat fined multinational companies Coca-Cola and Danone for selling products with monthly price increases up to 10 times over the limit established by the Precios Justos (Fair Prices) agreement. Danone was fined AR$45 million (US$205,397 at the official rate, US$103,199 at the MEP rate) while Coca-Cola was fined AR$40 million (US$205,397 at the official rate, US$91,732 at the MEP rate). In a press release, the Trade Secretariat said that the fined companies raised prices by up to 32.8%. However, the agreement is only applied in supermarkets and not smaller grocery stores. The Trade Secretariat said that it found, during price monitoring operations in grocery stores, that the suppliers were charging their products with markups well above the cap.
Source:Bueno Aires Herald
April 30, 2023 14:15 UTC
Customs suspends 59 exporters over currency exchange violations
Exporters are required to change dollars from overseas earnings into pesos, either at the official exchange rate or, in some cases, at special sector-specific rates. “They leave [the dollars] overseas or they convert them to the blue-chip swap rate,” a Customs press release stated. The blue-chip swap rate, also known as contado con liqui or CCL, is used exclusively in the financial world. Exporters receive less than half as many pesos per dollar at the official exchange rate: at the time of writing, the blue-chip swap rate is AR$453 per dollar, while the official exchange rate is AR$222. Exporters of certain agricultural goods can use the “agro dollar III” exchange rate of AR$300.
Source:Bueno Aires Herald
April 30, 2023 02:08 UTC
Peru sends military to Chile border to block migrants
Some 700 Peruvian soldiers and police officers will reinforce its southern border with Chile to prevent the entry of undocumented migrants, Peruvian authorities said on Friday, amid diplomatic tensions between the two countries over the issue. Hundreds of migrants are stranded at the border, including mostly undocumented Venezuelans, according to the Peruvian police. The migrants say they are seeking to enter Peru to continue their journey back home. The Peruvian Foreign Ministry summoned the Chilean ambassador in Peru to voice its frustration this week, alleging a lack of Chilean support. There are also an estimated 300,000 to 400,000 undocumented migrants in Peru, which has a total population of 33 million.
Source:Bueno Aires Herald
April 30, 2023 02:08 UTC
Customs to fine P&G at least US$ 68 million for overcharging imports
Argentine Customs sanctioned multinational consumer goods corporation Procter & Gamble (P&G) this week for allegedly overstating imports worth US$68 million from 2019 to 2022. As a result, Customs is seeking to fine the corporation US$ 68 million through its administrative judge, aiming to make it pay for the difference in the import duties it originally paid to match the actual prices. P&G has now ten working days to accept or reject the fine. When the administrative case is finished, the judge can establish the fine, which could range from the US$ 68 million Customs calculated to five times that amount. Customs said the judge will take into account the corporation’s record to decide the final amount.
Source:Bueno Aires Herald
April 29, 2023 02:21 UTC
German companies confirmed investments in Argentina
German companies have confirmed to Secretary of Industry and Productive Development, José Ignacio de Mendiguren, that they will continue investing in Argentina during the Secretary’s trip to Germany. In Stuttgart, de Mendiguren met with authorities from the automotive company Mercedes-Benz, who confirmed their investments in Argentina, as well as initiatives to increase exports. The Germany tour is a continuation of German chancellor Olaf Scholz’s visit to Argentina in January, Industry Secretariat sources said in a statement. In Ludwigshafen, Mendiguren visited the facilities of BASF, which specializes in organic chemistry and has been present in Argentina for more than 70 years. He stressed that Argentina is an important player in the current context of the company’s activities, and confirmed that BASF is planning investments for 2023.
Source:Bueno Aires Herald
April 29, 2023 01:33 UTC
Herald favorites: The Buenos Aires International Book Fair
A classic in the Buenos Aires cultural calendar, the 47th edition of the Buenos Aires International Book Fair begins today at the La Rural, the Rural Society’s huge event venue in the Palermo neighborhood. Organized by non-profit foundation El Libro, the fair features conferences, book presentations and signings, and many other activities. The opening speeches of the Buenos Aires Book Fair have brought memorable and often controversial moments. Jorge Luis Borges’ first poetry book Fervor de Buenos Aires will also be the object of a special homage because this year is the 100th anniversary of its publication. This year, far-right libertarian candidate Javier Milei will present a book entitled El fin de la inflación (‘The end of inflation’).
Source:Bueno Aires Herald
April 28, 2023 09:02 UTC
At any rate: Central Bank raises effective interest to 141%
After a run against the peso and a yearly inflation that well surpassed 100%, the Central Bank’s board raised the benchmark interest rate by 1000 basis points today. The measure means that the yearly nominal rate for 28-day Liquidity Bills —the rate the Central Bank lends money to financial entities— is now 91%, whereas the effective interest rate is 141%. By raising the interest rate, the Central Bank is attempting to make investments in Argentine pesos more attractive and discourage buying dollars. For the rest of the private sector’s fixed-term deposits, the minimum nominal interest rate is 85.5%, meaning that the effective rate is 128.5%. The last time the Central Bank had raised interest rates was last week, when it did so by 300 basis points, from a yearly 78% nominal rate to 81%.
Source:Bueno Aires Herald
April 28, 2023 02:45 UTC
Massa to call businessmen and unions to 90-day stability plan
Economy Minister Sergio Massa has announced he will convene businesspeople and union leaders to draw up a “stability plan” for the next 90 days, during a meeting with members of social organizations and unions. The objective is a price and salary agreement that provides some certainty in a context of annual inflation above 100%. According to a spokesperson in the Economy Ministry, “from Saturday, the Minister will call businessmen, trade unionists and social movements to work together on the basis of the economic order”. Regarding this week’s run on the peso, which led to the informal dollar peaking at just below AR$500, Massa said some people tried to “cheat” over “rumors” and generated uncertainty. Héctor Daer, the General Confederation of Labor’s (CGT) joint secretary general, said the CGT would help the government with “support and trust,” and that they wouldn’t join the “speculators in the financial market that harm everyone’s economy”.
Source:Bueno Aires Herald
April 27, 2023 13:23 UTC
Argentina to start using yuan to pay for imports
Economy Minister Sergio Massa announced the start of foreign exchange operations in yuan for importing companies in order to relieve Argentina’s ailing international reserves. According to Massa, the Central Bank is set to save US$1 billion in April and US$790 million as of May. “This will stop weighing on the outflow of our dollars and transfer to the outflow of yuan,” said Massa during the announcement at the Economy Ministry. “It gives us greater freedom and gives the Central Bank greater operational capacity. “We can’t guarantee the flow of imports, there are doubts as to whether what is en route to Argentina will be able to be accessed.
Source:Bueno Aires Herald
April 26, 2023 23:21 UTC
Bond auction: government gets AR$1 trillion
The Economy Ministry secured AR$1.15 trillion in its bond auction today in the second and last round of April, where it faced maturities of AR$965.79 billion. It was the biggest bond auction this year. The “menu” consisted of seven bonds with only one new financial instrument (TDA24), a dual bond that matures on April 30, 2024. The auction finished one day after the informal dollar reached a record-breaking AR$497 and the currency exchange gap (brecha) exceeded 120%. The next bond auction is scheduled for May 17.
Source:Bueno Aires Herald
April 26, 2023 22:46 UTC
Argentina's IMF deal falls through: negotiations ongoing
Official sources in the Argentine government have told the Herald that they consider the country’s deal with the IMF has fallen through. A spokesperson for the IMF also alluded to ongoing renegotiations with the government. The deal includes an economic program that Argentina must comply with in order to receive disbursements every three months, which are then used to pay for the previous debt with the IMF. The government missed the first-quarter fiscal deficit target agreed with the IMF by 56% and an economy ministry taskforce was set to travel to Washington D.C. later this week to meet IMF authorities in order to continue negotiations over the redefinition of the agreement. Earlier in April, IMF head Kristalina Georgieva explicitly acknowledged the severity of the drought’s impact on Argentina’s economy.
Source:Bueno Aires Herald
April 26, 2023 10:56 UTC