LatinNews Daily - 08 November 2022

In brief: Argentina’s Massa announces new exchange rate

*Argentina’s Economy Minister Sergio Massa has announced another special currency exchange rate in a bid to encourage exports and boost foreign currency reserves. Speaking in Mendoza province, Massa said the preferential exchange rate would apply to local producers that have seen crops affected by adverse weather, particularly this year’s prolonged frost, which has affected producers in the provinces of Mendoza, Catamarca, San Juan, Jujuy, La Rioja, Neuquén and La Pampa, among others. The preferential rate will be rolled out from 20 November until 30 December for all provinces, granted that there are agreements between the exporters and producers, in order to ensure the producers benefit from the deal; and that the provinces participate in the government’s price control programme. Massa said the exchange rate would allow regional economies to compensate for losses due to the adverse weather. This follows the successful implementation of the ‘soy dollar’ in September, a preferential exchange rate for soybean farmers, which boosted net reserves by around US$3.5bn. Massa also announced two credit lines for local producers, one for 18 months with no interest rate through Argentina’s development bank (BICE) and one for 60 months, with a fixed rate of 48% and repayments starting in the 19th month, “giving them [producers] time to recover and finish the new production process.”

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