The government of President Alberto Fernandez hopes the plan - to be announced by Economy Minister Sergio Massa - will lead agro-export companies to bring in some $15 billion between the second and third quarters of 2023, including to regional economies. "The announcement (of measures) is on Massa's agenda for tomorrow (Monday)," the spokesperson told Reuters on Sunday.
Argentina's agricultural sector last year lost some $20 billion after a fierce drought hit crops of soybeans, corn and wheat, according to analysts, slowing the economy amid galloping inflation that accelerated by more than 100% year-on-year. The soy dollar rate was used twice last year to stimulate sales. "The delicate situation of (the BCRA's) net (foreign) reserves requires the government to take measures to strengthen them in the short term," consulting firm Delphos Investment said. Analysts consulted by Reuters expect the new special exchange rate for the so-called "soy dollar" to be between 270 and 300 Argentina pesos per dollar.
The peso closed at 209.01 units per dollar on Friday. The new rate could be applied immediately as an export incentive for soybeans, and maintained for the next 90 days to boost foreign trade in regional economies, a source from the ministry of agriculture said.
The South American country, suffering a prolonged financial crisis, is the world's top exporter of soy oil and meal and the No. 3 for corn, which are the main sources of its foreign currency income. The International Monetary Fund (IMF) executive board on Saturday approved changes to Argentina's reserves accumulation target set in their $44 billion program. The BCRA saw sales of dollars increase in March, with reserves dropping by $1.9 billion last month, with reserves depleting by around $3 billion in the first quarter.
(Reporting by Jorge Otaola;
Writing by Oliver Griffin; Editing by Stephen Coates)
