“Soybean dollar 2” working as planned for Argentine authorities

“Soybean dollar 2” working as planned for Argentine authorities

Argentina’s new version of the “Export Increase Program” (PIE) has resulted in US$ 1.824 billion worth of soybeans sold abroad, which nearly meets the government’s target, it was reported Friday in Buenos Aires.

 The new PIE, also referred to as ”soybean dollar 2″ recognizes a parity of AR$ 230 for each US dollar, which in addition to a short supply amid growing global demand, has yielded positive results for the economic team headed by Superminister Sergio Massa.

On the first working day after the new soybean dollar, the price of the oilseed was quoted at AR$ 80,000 per ton which eventually became AR$ 100,000 per ton.

Soybeans on December 1 were trading at US$371 per ton, which with a dollar at AR$ 230 meant AR$ 85,330 per ton. One week later the value rose to US$430 and its peso equivalent with the PIE reached $98,900. A more than substantial improvement of US$ 59 per ton.

Since Nov. 28, the PIE, which establishes a differentiated exchange rate for soybean exporters, has boosted the sale of more than 3,885,000 tons of the legume, according to the Rosario Stock Exchange (BCR).

The special exchange rate seeks to generate a greater liquidation of foreign currency by the agro-export complex in order to increase international reserves and, for this purpose, to achieve at least US$ 3 billion by the end of the year.

The scheme had been first implemented (“soybean dollar 1”) on Sept. 5, achieving a liquidation of US$ 8,125 million. During the new stage, the inflow of foreign currency has allowed the Argentine Central Bank (BCRA) to purchase some US$ 361 million last week and up to US$ 1,054 million this week, according to sources in financial circles.