New stocks: producers who liquidated at value "soybean dollar" they will not be able to buy foreign currency at the official exchange rate

To avoid the double game played by soybean dollar beneficiaries, the BCRA limits their access to the official exchange rate. How is this measure

By Pilar Wolffelt

09/19/2022 – 7:44 p.m.

Much has been said in recent hours about the possibility that new restrictive measures for access to the dollar could arrive from the Central Bank of the Argentine Republic (BCRA) these days and this Monday, they finally arrived from an unexpected side: in the form of of restrictions on access to the foreign exchange market for producers and collectors of soybeans.

And it is that much was also said about the fiscal and monetary effort by the Central Bank that demands the new soybean dollar, which allows this sector to access a differential exchange rate of $200 per dollar. Let us remember that the producers sell the harvest in pesos to the exporters, industry or collectors, but they benefit from a dollar price higher than the official one.

This caused the field to begin to liquidate strongly and a volume of US$3,000 million has been recorded up to today in this way. The pesos that the sojeros received for these liquidations were going to the alternative exchange rates. In fact, last week many agricultural companies went to the financial dollars to buy MEP and began to drive up the prices of those dollars.

Consequently, the BCRA ordered, through Communication “A” 7609, that, as of 09/20/2022, which is this Tuesday, the clients of financial entities residing in the country that are engaged in agricultural activity and receive the benefit of the soybean dollar, established by Decree 576, whoever exports it directly or as a result of a production process carried out in the country will not be able to access the foreign exchange market to make purchases of foreign currency by human persons for training of foreign assets of residents, remission of family assistance and for operations with derivatives (which are those that are made in the financial markets to obtain a profit without risk, taking advantage of any opportunity of price difference between two markets to make a profit).

Likewise, they are prevented from exchanging securities issued by residents for foreign assets (referring to Cedears), or transferring them to foreign depository entities (this is buying a negotiable obligation, known ONs, or corporate bond listed in Argentina, and they exchange it for an ON or bond of the same corporation that is listed abroad).

In other words, those economic agents, whether producers or collectors, who have sold soybeans under the Export Increase Program, which is the one that recognizes the value of $200 per dollar for the actors in the soybean complex, will not be able to access the market. of exchange for purchases of foreign currency nor carry out operations with titles and securities with settlement in foreign currency.

In this way, the BCRA seeks, in order to stop processes that alter against the exchange tranquility that it has been able to achieve in recent times, to establish equitable rules between those who benefit from the soybean dollar and those who received or receive a subsidy from the State for a IFE or rates. Let us remember that these groups cannot buy dollars because they benefit from the fiscal effort, therefore they cannot use that benefit to buy foreign currency or go to the financial market to make MEP/CCL or buy Cedear.

The producers do have the possibility of leaving the sale in pesos in the sight account remunerated in the official dollar, the accounts in the link dollar or chacarera. However, many were going to the dollar in other ways.

However, the response from the Chamber of the Oil Industry of the Argentine Republic (CIARA) was swift and, minutes after the BCRA rule was published, the entity stated that “the recent BCRA measure aimed at cooperatives, collectors and producers who sold soybeans to exporters is restrictive and limiting the foreign exchange market, in addition to being detrimental to the entire soybean chain”.

– News in development

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