The commercial exchange with Brazil during August left a deficit of US$ 107 million for Argentina, higher than the $42 million negative balance registered in the same month last year. Argentine exports to Brazil fell 25% year-on-year in August, totalling $619 million, while imports from that destination fell at a lower rate of 16.3%, totalling $726 million.
The Argentine agribusiness contributed more than $3.6 billion in withholdings during the first half of the year. It means that out of the $20 billion exported, almost 20% remained in the coffers of the National State.
The government says it needs to have the $170 billion that Argentines treasure. Any government, no matter how biased, requires that a portion of the treasured dollar be put back into circulation in the economy. 10% of that treasure channelled into domestic spending or investment could improve the economy, and gives an idea of what the economy is missing, and a reminder to policymakers. The truth is that Argentines who have saved in dollars outside the system did so for a reason.
In August, the liquidation of foreign currency in the agricultural sector reached $1.74 billion, a fall of 23% concerning the same month last year. The accumulated amount in 2020 was $13.35 billion, a decrease of 12.2% compared to the same period in 2019. Thus it is confirmed that the income of foreign currency from the countryside shows an evident decline.
August inflation accelerated to 2.7%, thus accumulating a year-on-year increase of 41.9%. It is the highest monthly figure since last March. The price index got a rise of 18.7% in the eight months so far this year.