The Argentine industry used in September only 57.7% of its installed capacity, representing 3.4 percentage points less than in the same month of 2018, according to the National Institute of Statistics and Census (Indec).
Argentina must repay $5 billion by the end of 2019. It doesn’t have much to work with. While the country’s foreign reserves total a still somewhat robust $43 billion, that figure shrinks markedly once untouchable assets such as dollar deposits of everyday Argentines and a credit line from China are stripped out.
The three largest oil companies operating in Argentina (YPF, Axion and Shell) apply from today a 5% average increase in the price of gasoline. It is as a result of the end of the decree that froze fuel prices for 90 days after the primary elections to prevent the devaluation in which the dollar jumped from 45 to 57 pesos was transferred to prices.
Farmers fear that Alberto Fernández will restore interventionist policies to combat soaring inflation, service billions in foreign debt and pay for promised social programs.
Activity in the non-deliverable forwards (NDF) market, which foreign investors use to protect against fluctuations in the peso, has evaporated after capital controls were imposed in September.