The South American country, the world's top exporter of processed soy and No. 3 for corn, is battling to right its troubled economy after years of crises and defaults. It has a $44 billion loan program with the International Monetary Fund (IMF) that has recently come under strain as the fund lowered the country's targets for foreign reserves.
The so-called "soy dollar" was used twice last year and did help create a boost in exports, at least in the short-term helping ease availability of foreign currency. Economist Roberto Geretto of Fundcorp estimated that in the best-case scenario, Argentina's central bank could gain some $4 billion over the next two months, though then foreign currency income would fall away again given depleted harvests. "This new measure aims to buy two months, which in the current context is not insignificant," Geretto told Reuters. Ber agreed the impact would be temporary but added the higher price given to exports could fan domestic inflation more, a key theme for voters ahead of the October ballot. "The effect of these initiatives – as has happened in the past – would again be transitory, more than anything considering that the associated monetary issuance could end up putting even more pressure on inflation in the coming quarters," he said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Argentina: reserves tumble Argentina: reserves tumble Argentina: reserves tumble Argentina: reserves tumble ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Walter Bianchi and Anna-Catherine Brigida; Editing by Adam Jourdan and Aurora Ellis)
