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.
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 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 Central Bank (BCRA) signed on Thursday the renewal of its currency swap agreements with the Bank of the People’s Republic of China (PBC), for some $18.5 billion, with a 3-year term.
UNICEF Argentina today presented a new estimate of child poverty in the country and the data is alarming: projections show that between December 2019 and December 2020, the number of poor girls and boys will increase from 7 to 8.3 million. Thus, by the end of the year, the percentage of poor children would reach 62.9%.
The international price of crude oil crossed the border of $45 fixed with the “Creole barrel”, and if it remains at these values for nine consecutive days, the national government has the power to leave without effect the measures to support the activity of hydrocarbons or increase the floor to $50.
Total soybean production reached 49.6 mn tons, with yields of 29.4 quintals per hectare, and planting of 16.8 million hectares. Compared to the previous cycle, despite having the same area planted, water stress generated interannual falls of about 12% in yield and 10% in production. The participation of the State in agricultural income was almost 70% last June, where 26% of total taxes are co-shared, 67% are national (not co-shared), 5.2% are provincial and 0.8% municipal. Producers invested an average of $741 per hectare but made a profit of just $4.
With the announcement of the agreement on debt between creditors and the government, dollar bonds shot up to almost 9.6%. The country risk fell 9.7%, closing at 2,027 points.