Argentina’s Milei trims FX sweetener for grains exports after devaluation

Argentina’s new government of libertarian President Javier Milei trimmed back a currency exchange sweetener for grains exporters after it sharply devalued the official peso exchange rate, according to a decree in the official gazette.

The decree said that exporters, including of grains, would now be able to exchange 20% of their foreign currency revenues into pesos at higher parallel exchange rates that are currently above 1,000 per dollar, lowering that from 50% previously.

The government allowed the official exchange rate to devalue sharply on Wednesday to around 800 per peso from 366 previously, reducing the need for additional FX incentives for farmers in the major soy, corn and wheat exporting country.

Milei, a libertarian economist, assumed the presidency of Argentina on Sunday and faces a complex economic outlook, which includes triple-digit inflation, negative net foreign exchange reserves and a weak domestic currency.

Source: Reuters via Nasdaq

Click here to read the original story report: https://www.nasdaq.com/articles/argentinas-milei-trims-fx-sweetener-for-grains-exports-after-devaluation

Sharing is caring!