The International Monetary Fund (IMF) will enable the Special Drawing Rights (SDR), with which there will be extra money that the financial organisation will transfer to the countries that have their contribution up to date. Argentina is one of them; it assumes that between $3.3 and $3.5 billion extra money will arrive from the IMF in the coming weeks, without the need for adjustment applications or any relation to the Extended Facilities agreement that the government is negotiating with the Fund. The money represents the country's 0.7 per cent quota share of its total contributions as an active member of the IMF.
With the update of the Internal Taxes' taxable base arranged this week by the AFIP, the automakers are preparing to adjust the price lists of the 0 km that will apply from Monday. The first carmaker to change prices is Toyota. It increased the wholesale value of some models by 11% but only passed on 5% to the public. The other brands are defining their strategy.
The trade balance recorded a surplus of $1.068 billion in January due to exports of $4.91 billion and imports of $3.84 billion. The first month's data seem to indicate a general improvement in the country's foreign trade conditions. Strictly speaking, the higher export earnings were the result of the increase in the price of soybeans averaging $500/tonne. In terms of quantities, there was a fall in shipments abroad.
Economic activity in January recorded year-on-year growth of 1.3%, according to estimates by the Orlando Ferreres Centre for Economic Studies. Half of the impetus for growth in the first month of the year came from industrial activity; the manufacturing sector is the engine of economic recovery after the financial collapse of 2020 caused by the covid-19 pandemic.
Economic activity recorded a 2.2% drop in December compared to the same month in 2019, bringing the total slump to 10% in 2020, according to the National Institute of Statistics and Censuses (INDEC). Despite exhibiting a sharp contraction, the figure was better than expected, mainly because the construction and industry sectors recorded a strong rebound in the second half of the year.
The Treasury placed 221.96 billion pesos ($2.47 bn) amid increased investor appetite for peso funding due to the foreign exchange market's calm.
YPF placed Debt Securities for $122 million in two series, reopening the 33-month Dolar linked Class XIV issue and the 42-month UVA (Unidad de Valor Adquisitivo) denominated ON Class XIX, following the restructuring of its debt in the international markets.
As of 1 March, the stabilised energy price will increase by 90%. It will go from 2,910 pesos ($32.53) to 5,500 pesos ($61.49) per megawatt per hour for non-residential users who consume more than 300 kW power. The final impact will be, on average, 50%, but in some cases, it will reach 70%.
The National Public Sector (NPS) recorded a primary surplus of 24.07 billion pesos ($269.19 mn) in January. Meanwhile, interest payments on public debt, net of intra-public sector payments, amounted to 27.10 billion pesos ($303.07 mn), so the NPS financial result was a deficit of 3.03 billion pesos ($33.88 mn).
A report by JP Morgan, entitled "Argentina: the monetary policy labyrinth", notes that the BCRA's net or freely available reserves, which do not include loans and private deposits, are close to $3 trillion, including gold holdings. The BCRA would find it challenging to dispose today of the $2.4 billion needed to cancel a payment with the Paris Club at the end of May; moreover, renegotiating the Paris Club's maturity requires having signed the extended facilities agreement with the IMF, due to statutory issues.