Although reserves remain at levels of $43.2 billion, in reality, there is less and less available to intervene in the foreign exchange market. It estimates that only $4.5 billion is available. It’s a little more than 10% of the institution’s gross reserves, a figure that is permanently monitored by the institution’s board of directors, which is on alert due to its rapid decline.t This is the last line to defend the exchange rate.
The decision of the European Union (EU) to temporarily ban the entry of Argentine citrus fruits, due to the appearance of Mancha Negra (Phyllosticta Citricarpa) mainly in the exports of lemons produced in the Northwest of Argentina, will generate enormous damage to the sector. Now the measure will impact on shipments of oranges and tangerines, grown in Entre Rios and Corrientes, with a loss of about 40 million dollars.
Compañía General de Combustibles (CGC) lost in the first half of the year 1.77 million pesos ($24.2 mn), as reported in a note to the National Securities Commission. CGC is the leader in gas production in Argentina’s Southern Basin and is the co-controlling shareholder of the largest gas transportation network in the north and centre-west of the country (TGN, Transportadora de Gas del Norte), with connections to Chile, Bolivia and Brazil. Its specialization is the exploration and production of hydrocarbons (upstream) in the Austral Basin.
Corn, wheat and soybean prices rose sharply in Chicago on Monday, driven by signs of strong demand and weather damage to crops in the U.S. Midwest that could affect supply. Wheat climbed 3.1% to $189.79 per ton; corn ended up 1.9% at $130.21. And soybean gained 1.6% to $335.02.
Gold rose more than 2% on Monday to its highest level in nearly a week, boosted by a weaker dollar, a reversal in Treasury bond yields and news that Warren Buffet’s Berkshire Hathaway bought a stake in a large gold mine.
In a negative day for emerging markets, Argentine stocks traded on Wall Street suffered sharp declines, some close to 7%, while country risk hit a high of 2,131 points in August on the same day that the Argentine government submitted the new debt restructuring offer to the U.S. Securities and Exchange Commission (SEC).