Day: June 4, 2020

Demand for corporate dollars exceeded 30%

The volume of dollars required by Argentine companies in the foreign exchange market for the import of goods was 30% higher than the number of products entered the country during the April-May bi-monthly period. Importers accessed foreign currency for $ 7.5 billion while products for a value close to $ 5.8 billion entered the country, which configured a disruptive behaviour in the exchange market.

ADRs rose by more than 10%, and country risk fell by 3.7%

Argentine shares rose sharply for the third consecutive day on Wednesday, with Despegar papers leading the way, with a 10.2% rise on Wall Street, followed by BBVA Argentina (+9.1%) and Telecom (+8.3%). The country risk dropped 3.7% to 2,481 units. The S&P Merval Argentine Stock Exchange and Market (BYMA) index rose 4.3% to 43,620 units.

Companies in Argentina pay 106% income tax

According to data from the annual Doing Business report prepared by the World Bank (WB), Argentine companies pay 106% in taxes on their profits. It means that in Argentina, a company with 60 employees and an annual turnover of $12.6 mn with a gain of 20% ($2.4 mn) must pay the State $ 2.54 mn

Due to the exchange control of the dollar, agriculture could lose $1.2 bn from the wheat harvest

An exchange rate split means that the producer will end up paying one CCL dollar (115 pesos), MEP (107 pesos) for his productive inputs, that is, a dollar two to three times higher than what he is receiving for his production (46 pesos for soybeans). It means that 6.8 million hectares must be planted with low production technology, and 6.8 million tons will be lost, valued $1.16 billion. In the territory of Buenos Aires that produces 60% of wheat in the country, the price increase of the technology package will cause a fall of about $400 million.

State favours oil industry over agricultural reveals study

A study carried out by the Rural Society of Jesús María, showed that the oil industry receives a preferential treatment from the State compared to the agricultural industry. The agricultural industry generates more taxes than it has and is forced to liquidate its production in order to access credit lines, despite the fact that it generates more foreign currency and jobs. On the other hand, the oil industry has seen its export tariffs reduced, while the agricultural industry has seen the opposite.