By Jorge Otaola
BUENOS AIRES, March 3 (Reuters) - Argentina and the
International Monetary Fund (IMF) are zeroing in on an agreement
for more flexible currency reserves targets this year dependant
on the South American country's exports, a government source
told Reuters on Friday.
The indebted country, an important grains exporter, is going
through a severe drought that is battering its soybean, corn and
wheat harvests as well as exports hopes, a blow to government
plans to rebuild depleted dollar reserves.
Argentina and the IMF established targets that included
rebuilding reserves in a $44 billion debt deal struck last year,
which replaced a program that failed to keep the country from
slipping into economic crisis.
However, the impact of the recent drought and high prices
linked to the war in Ukraine, have led to talks over easing the
reserves targets for this year.
"They are finalizing reserves goals for the year, with
scenarios of a fall or increase in exports," said the government
source, asking not to be named as the talks were ongoing, adding
there was no set date yet for an announcement.
The economy ministry declined to comment.
The IMF did not immediately respond to a request for
comment.
Argentina's central bank net foreign currency reserves
currently stand at some $4.4 billion, according to private
analysts.
Under the latest IMF review, Argentina had targeted net
reserves to increase by a cumulative $5 billion by the end of
2022, $5.5 billion at the end of March and $9.8 billion at the
end of this year.
Argentine officials went to Washington last week for IMF
talks over the latest review of the country's extended fund
facility program for the fourth quarter of 2022. Approval is
needed to unlock a $5.3 billion disbursement, key to make
repayments to the IMF for a similar amount in March-April.
(Reporting by Jorge Otaola; Editing by Adam Jourdan and Josie
Kao)
Messaging: adam.jourdan.thomsonreuters.com@reuters.net))
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