Under the pretext of avoiding a balance of payments crisis, everything points to the fact that the exchange rate trap will have a long life. There is concern about the dripping reserves that the BCRA is suffering. At the end of almost three weeks in July, the BCRA recorded net sales with the private sector of $362 million. Net reserves estimated at $10 billion, half of which is gold and SDRs.
The gap between the "blue" dollar and the official retail exchange rate stood at 79% yesterday. Given this scenario, economists and foreign trade experts warn that the various exchange rates are discouraging export decisions. Soybean producers are receiving 60% less than what their goods would be worth if the dollar were free and if there … Continue reading Agricultural dollar: warns that 79% gap with blue complicates export
Spot gold climbed 1.8% to $1,934.62, a new record after an escalation in the geopolitical dispute between the United States and China, which affected the dollar and threatened to hit the global economy even harder. Gold has climbed 28% this year. The dollar is losing its appeal as a refuge. The dollar depreciated on Monday to a nearly two-year low against the EUR, which rose 0.9% to $1.18. In a similar vein, the Yen gained 0.8%.
The economic depression generated by the extensive quarantine triggered originally expected expenditures by 18%, and reduced the resource forecast by 20%, according to the bill sent by the government to Congress. A total projected deficit of 10% of GDP emerges. It would mean the most profound imbalance in 45 years.
The massive consumption had during the month of June, a fall of 3.2% compared to the same month of the previous year. According to the product categories, the main consumption drops in June were in non-alcoholic beverages (-13.4%); sweets, (-9.6%); hygiene and cosmetics (-5%); spirits (-3.8%) and perishable and frozen (3.6%).