New regime for importers
Massa anticipated that there will be measures for greater exports in the technology sector and also others linked to the use of automatic licenses and a single current account for the operation of the foreign trade market.
The objective, he assured, is “tothat there is no misuse of the dollars of the Argentines that generate value, export and generate foreign currency for Argentina and end up bringing as reserves, then they end up being misused by some who abuse the fragility or the regulatory holes of the State”
As anticipated, companies that access the Comprehensive Import Monitoring System (SIMI), at the time of obtaining approval, will know the date on which the BCRA will pay that obligation it assumes.
In this way, the aim is to reduce uncertainty and preventive price markings, in addition to removing arguments for the imposition of judicial injunctions that allowed the importation of items that the Government considers non-essential.
“The new regime is going to make sure that all those alive who obtained injunctions to import 48,000 square meters of cloth sheds or 20 million dollars in towels, or mechanisms for importing tires stacked in a warehouse no longer have the protection of judicial measures to circumvent the control of Argentine foreign trade,” said the minister.
And he assured: “Our central objective has to be to increase Argentina’s export levels and volumes to sustain a process of accumulating permanent reserves that allows us to regain strength and vigor in our Central Bank and in our currency.”
Tech dollar
The measure contemplates that the firms will have free availability of dollars for 30% of the incremental of its exports, according to information obtained by scope.
Foreign sales in this sector reached US$6,442 million last year, according to data from Argencon, the entity that brings together software and professional services companies. It thus becomes the third largest exporter complex in the country, behind agriculture and the automotive industry. It is estimated that in the current year they could reach or exceed US$7 billion in exports.
To encourage investment, the regime drawn up by the Ministry of Economy exempts the requirement of liquidation in the Free Exchange Market of up to 20% of the currencies that could be entered as direct foreign investment. Investment projects, not less than US$3 million, must be allocated to infrastructure, capital goods and working capital.
This 20% profit it can be applied to the payment of principal and interest on commercial or financial liabilities abroad; to the payment of profits and dividends that correspond to closed and audited balances; to the repatriation of foreign currency of non-residents, or to the investments reached by the Regime.
Companies can adhere to the new Regime until June 30, 2023 and have 24 months to carry out investments from the approval of the project, extendable for up to another 2 years.
What will happen to the official dollar
At Thursday’s press conference, the minister ruled out a sharp devaluation. Sergio Massa assured that advancing in a devaluation to solve the problems of the economy would represent pushing millions of Argentines into poverty, while maintaining that “there is no social peace without macroeconomic stability but neither is there macroeconomic stability without social peace.”
“We have been doing work to reduce the gap, one of the problems of the Argentine economy; and, for those who believe that the problems are magically fixed by a devaluation, we understand that we must have responsibility because changing the exchange rate from one day to the next represents pushing 20 points of Argentines into poverty, “said Massa in the Treasury Palace.
The dollar wholesaler, which is directly regulated by the BCRA, rose 25 cents to $147.32. Meanwhile, during the week it rose $1.88, below the $1.92 increase registered during the five previous days. While in September the currency gained $8.59 or 6.2%. Meanwhile, the volume operated in the cash segment reached US$1,188.47 million.
Exchange rate differentials are ruled out
Despite requests from some sectors of the industry to establish special regimes, Economy flatly ruled out carrying out differential exchange rates and proposed incentives to increase exports. This is the case of the Knowledge Economy sector, which will have special benefits that will be announced this Monday, as Ámbito anticipated.
Malbec dollar: The winemakers demanded that the National Government implement a “Malbec dollar” to stop the drop in exports. This means that the 4.5% rate of export duties that are currently levied on wine is eliminated, according to a statement issued by Bodegas de Argentina, the chamber that groups wine industrialists. In addition, “support is requested for international promotion and that policies be implemented to reduce or eliminate the tariffs paid by national wineries to enter their wines in the main international markets.”
According to statistics from the National Institute of Viticulture (INV), total exports of bottled wine between January and July reached 116 million, which represents a drop of 7.3% compared to 126 million liters in 2021.
SME dollar:Industriales Pymes Argentinos (IPA) affirmed that foreign sales of small and medium-sized companies are declining due to “the differences that exist between production costs and the liquidation of exports”.
The president of Industriales Pymes Argentinos (IPA), Daniel Rosato, considered necessary a differentiated exchange rate for the sector, which allows sustaining exports and maintaining employment. Meanwhile, small and medium-sized companies remain expectant before the next announcements that the Ministry of Economy will make on imports and access to foreign currency.
“We need an SME dollar to sustain industrial exports and avoid the loss of jobs,” said the leader, who assured that foreign sales of small and medium-sized companies are declining due to “the differences that exist between the costs of production and liquidation of exports.
Mining dollar: The Secretary of Mining, Fernanda Ávila, said on Tuesday that the national government is evaluating the implementation of a “mining dollar” to guarantee the investments of the entire sector in the country, a few weeks after the Executive has implemented the “soybean dollar”. ” to encourage crop exports at a preferential price.
“It’s something we’re talking about. I don’t think a single measure can solve all the problems, but it is something we can talk about, or a measure that can help most companies,” Ávila said.
Qatari dollar
For now, Economy would have decided not to make changes to the current scheme. However, it will be for now as it has not been ruled out for later as we get closer to the World Cup in Qatar.
The tourist balance will be watched closely. In August, the outflow of foreign currency (gross) for trips and tickets and other expenses with cards was close to US$800 million, the highest value for this month since 2017, according to Ecolatina. After the strong increase in reserves in September, The goal will be to improve the trade balance and the arrival of US$2 billion in loans from multilateral organizations.