Argentina, IMF discussing export-linked reserve targets

Argentina and the International Monetary Fund (IMF) are zeroing in on an agreement for more flexible currency reserves targets this year dependant on the South American country’s exports, a government source commented on March 03.

The indebted country, an important grains exporter, is going through a severe drought that is battering its soybean, corn and wheat harvests as well as exports hopes, a blow to government plans to rebuild depleted dollar reserves.

Argentina and the IMF established targets that included rebuilding reserves in a $44 billion debt deal struck last year, which replaced a program that failed to keep the country from slipping into economic crisis.

However, the impact of the recent drought and high prices linked to the war in Ukraine, have led to talks over easing the reserves targets for this year.

“They are finalizing reserves goals for the year, with scenarios of a fall or increase in exports,” said the government source, asking not to be named as the talks were ongoing, adding there was no set date yet for an announcement.

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