August started worse than July for the BCRA, which in just two days recorded net foreign exchange sales of $224 million. In July there was a substantial expansion of the monetary base due to financial assistance to the Treasury. It is an illusion to think about relaxing the clamp if the monetary entity continues to sell foreign currency instead of buying it. So far this year, the BCRA has recorded a loss of reserves of $1.37 billion, of which $687 million correspond to net sales in the foreign exchange market.
The state energy company IEASA requested to be a plaintiff in a case opened by irregularities in the awarding of the thermal power plants Ensenada de Barragán and Brigadier López. The buyers paid $118 million less than the $516 million established by the Appraisal Court and did so with dollar credits taken abroad.
This week the Memorandum of Understanding between Argentina and China could be signed to boost the growth of the local pork sector and then export pork to China. Investments could exceed $3.5 billion over the next six years. It would accompany by the construction of 25 integrated units in several provinces where they will install feed processing plants, biodigesters, hatcheries, cold storage, and effluent treatment plants. Today, Argentina’s pork production is around 700,000 tons and could double.
Credit card operations in dollars registered an increase in July and June of 37.5%, accumulating a rise in the last three months of 89%. However, the year-on-year fall reached 67.6%.
According to an analysis by the International Strategy Institute (IEI) of the Chamber of Exporters, the exchange reached $1.36 billion in June. National exports totalled $666 million and imports $692 million, leaving Argentina’s deficit at $26 million.
The city of Buenos Aires has just launched a comprehensive green plan to reverse the adverse effects of climate change and its impact, in line with the axes required by the Paris Agreement, to which Argentina signed up in 2016. It is working to reduce emissions of the leading greenhouse gases (GEis), which account for 13.1 million tonnes of CO2 according to the latest official measurements. It focuses on three key sectors with high participation in emissions: responsible energy of 58%, transport of 28% and residues of 14%. The initiative will seek to make the city carbon neutral by 2050
The national government presented on Thursday the guidelines to increase gas production during the next four years. It has as its central pillar a 4-year competitive auction scheme for onshore development. For off-shore projects, an eight-year term will apply to amortize costs. It aims to secure fixed blocks of 70 million cubic meters per day (MMm3/d) for production companies for 365 days until 2024. It plans to authorize export volumes of up to 11 MMm3/d during the summer season. By promoting local production, the desired effect is to achieve a reduction in imports of Liquefied Natural Gas (LNG) and liquid fuels, to enable a reduction in the cost of the service.
The corn harvest ended this week at the national level with a production of 50 million tons, exceeding the soybean harvest for the first time in 20 years, reported the Buenos Aires Grain Exchange (BCBA). The corn harvest covered a total area of 6.12 million hectares, with a national average yield of 81.7 quintals per hectare. The reduction in export duties and the incorporation of technology made it possible to increase production.
The Government announced this Thursday the execution of a series of public works destined to the provinces of Buenos Aires, Entre Ríos, Corrientes, San Juan and Santa Cruz that contemplate an investment of more than 22 billion pesos ($302.9 mn), the initiative will generate 170 thousand new jobs.
The project of differential withholding and refunds for agribusinesses is advancing. This week, the Argentine Agribusiness Council (CAA) made the first concrete proposal to the government: rebates ranging from 4% to 7%. Two levels of rates would apply according to the degree of industrialization: 4% for products with less processing and 7% for those with more processing. No refunds would grant for exports of soya beans, maize, wheat, barley and sunflower. The Foreign Ministry believes that shipping from the sector could increase from $65 bn to $8 bn in the next two years.