On Sunday midnight, soon after the elections, the Central Bank (BCRA) informed its decision to reduce the purchase of dollars from $10,000 to $200 per month for individuals with a bank account and to $ 100 per month for cash purchases. These limits are not cumulative, the BCRA said. The BCRA has $43.5 billion of gross reserves left. Last week, it lost nearly $3.4 billion and so far in October, $2.1 billion. In September, it lost $10.6 billion.
The dollar closed the week at 65 pesos which marked a rise of 1.66 pesos and a week accumulated increase of 4.27 pesos. The Central Bank once again squandered international reserves by offering $220 million in different auctions and through direct sales. Nearly $600 million were sacrificed in one day. The reserves ended at $43.5 billion which implied a daily fall of an impressive amount of $1.75 billion.
Friday closes a chapter before Sunday’s general election. On Monday, a new chapter can bring some temporary calm. In the last 48 hours, deposit withdrawals went up to almost $500 million per day, which meant a decrease in reserves of around $250 million. It was the opposite effect to the promise of not affecting deposits in dollars if he is elected, made by the main opposition presidential candidate, Alberto Fernandez.
The government is investigating the reasons of Sunday’s blackout in Argentina. There were at least four failures two in the transmission network and two electric centrals reacted late to the emergency. Keeping the electric network in Argentina cost $9.5 billion a year.
Brazil’s Nu Pagamentos SA, a six-year-old fintech firm that grew to become the nation’s fifth-biggest credit-card issuer, has chosen the next target in its Latin American expansion: Argentina. The firm known as Nubank and backed by Goldman Sachs Group Inc. and Tencent Holdings Ltd. will open an office in the South American nation, co-founder Cristina Junqueira said in an interview. Rafael Soto, former chief executive officer at Argentina’s mobile payments app Uala, will head the new venture. Nubank plans to have 300 employees in Argentina by the end of 2020, Junqueira said. The fintech firm has 9 million customers, and recently sold private shares at a $3.6 billion valuation.
ExxonMobil will begin to develop the block Bajo del Choique-La Invernada in the gas reserve of Vaca Muerta in Argentina. The company plan to drill 90 wells, build a central production installation and develop infrastructure for gas exportation. The company expects to produce 55,000 barrels per day in five years, with an investment of $2 billion.
Argentina reached a primary fiscal-surplus of $10.8bn by the first quarter of this year, reported Finance Minister, Nicolás Dujovne. The result represents more than half of the goal established with the International Monetary Fund (IMF) for the second quarter of this year.
La Rosalía becomes the first establishment in Argentina to obtain a green certification from the European Union (EU) that will allow the firm to export milk to Europe. La Rosalía invested $5 million in solar panels and used low levels of agro-chemicals. The plant, of 450 ha, produces 12,000 litres of milk daily.
Argentine assets have stabilised somewhat in recent weeks, with the country’s central bank now allowed to use IMF resources to intervene in the peso. But many analysts and investors are concerned that the programme is fraying and could collapse if the populist opposition, led by former leftist president Cristina Fernández de Kirchner, wins the presidential election in October. A victory would be devastating for the IMF given its strong backing of Mr Macri.
The industrial activity fall beyond 9% during the first quarter of 2019, according to preliminary data from the Argentine Industrial Union (UIA). The data also show that all industrial sectors in the country registered a fall in their activity. Low demand, high interest rates and the current export schemes are among the main reasons for the fall.