Argentina imposes 35 % tax on foreign currency purchases to stave off hoarding

Argentina on Wednesday unveiled a new 35 percent tax on foreign currency purchases to prevent the public from hoarding U.S. dollars in the face of a weak peso. The Government said it would tighten currency controls to dampen the demand for U.S. dollars. Previous restrictions remain in place, including limiting citizens to buying no more than 200 U.S. dollars a month. The new tax does not apply to spending on healthcare, medication, books in any format, online education and software for educational purposes.

Government launches Local Supplier Development Program with $33.25 mn for agricultural machinery

The Government launched the Local Supplier Development Program, with a budget of 2.5 billion pesos ($33.25 mn) and targeting strategic value chains for the national economy. In this context, global brands of agricultural machinery are added to an official plan of local suppliers to develop national parts of world quality, at competitive costs and scales of production.

Private sector companies will be able to access only 40% of their dollar requirements for the financial debt

The Government issued a battery of measures with which it intends to reduce the demand for foreign currency, in which private sector companies will be able to access only 40% of their dollar requirements to pay financial debts in foreign currency and will have to present a detailed refinancing plan to initiate a process of renegotiation of their respective external liabilities. It occurs in a context in which reserves registered a notable fall to $388 million in September. So far this year, a retraction of $2.33 billion has been accumulated, while net reserves oscillate around $7 billion.

Cauchari solar park began to sell energy to the National System with 245 Mw

The Cauchari solar park, with 300 Mw of power, was commercially enabled, so it began to inject clean energy into the Argentine System of Interconnection (SADI). From Friday until last night, 245 Mw injected and it is very likely that by now it can reach 300 Mw. The work was executed by contractors Power China and Shanghai Electric, from the credit taken and the placement of an international bond ("green bond") by the provincial government, and is part of the range of Chinese investments in Argentina's energy.

External debt rose to $329.4 billion in August

The Government reported that as of August 31, the public sector debt as a whole, in pesos and foreign currency, amounted to the equivalent of $329.4 billion, $2.05 billion more than the previous month, as a result of placements and assistance from the Central Bank for $4.74 billion and payment of debt maturities for $2.69 billion. Total debt accumulated $16.12 billion in 9 months.

Steel production increased by 3.4%

The production of crude steel registered in August a 22.8% decline compared to the same month in 2019, with a volume of 336,000 tons; however, it marked an improvement of 3.4% compared to July. The accumulated production in the first eight months of the year reflected a 32.8% drop against the same period in 2019.