Month: August 2020

Currencies: producers delay soybean sales by more than $10 billion

The gap between the official dollar and the blue, which is around 80%, together with the impossibility of maintaining its position in dollars, discourages the grain trade and this hits the government’s coffers hard. Today producers have in their possession 18.5 million tons of physical soybeans available, and 8.2 million tons delivered to fix and without a price, which means around $10 billion in foreign currency -more than necessary for the Argentine economy in the last part of the year- but the truth is that they are far from accelerating their sales to finance the next campaign and this notices.

Cars over $26,200 will pay “luxury” tax

As of September 1, cars over $26,200 will pay internal taxes at a rate of 20% corresponding to the first scale of this tax. This tax will begin to impact from the lowest level since its application. In the last adjustment, it applied to vehicles over $27,400. Meanwhile, the second scale will have a 35% tax surcharge starting with models valued at $48,404. It is due to the 6.42% adjustment corresponding to the April, May and June quarter, which arises from the Wholesale Price Index System (SIPM) and will be in effect until the end of November, according to calculations made by automakers.

The government announced the production of new aircraft of national output with an investment of $2.5mn

The government announced that Argentina would begin manufacturing a new military training and primary civilian use aircraft. It is the IA-100 “Malvina”, which will be produced by Fábrica Argentina de Aviones S.A. (FADEA) and financed through the Institute of Financial Aid (IAF). The aircraft will require an investment of $2.5 mn and will be the first mass-production project of an aeroplane, after the IA-63 Pampa, an advanced training ship and emblem of the factory based in Córdoba.

Construction upturn: 54% of the works are in regular progress

The slight but gradual recovery of the economy after the abrupt closures due to the COVID-19 pandemic reflected in the improvements observed in the construction sector, which is essential in driving other activities and generating employment. More than half of the works with contracts in force until July 31 are already under regular development, an improvement of 20 points was observed in recent months, as the figure rose from 34% to 54%.

Reserves: BCRA sales now total $738 million

So far in August, the BCRA has sold $738 million in reserve dollars, exceeding the May maximum of $679 million. It is the most massive net sale of foreign currency of the year, which so far accumulates a total of $1.2 billion. It is not the fault of the $200 quota. The drainage reflects other macroeconomic symptoms, such as the excess liquidity and the investment spirit that so far is declining due to private deposits in pesos.