Starting September 30, the dollars than the Argentines and Argentine companies hold in banks, foreign accounts, safety deposit boxes or under the mattresslargely unreported, amount to US$ 246.870 million.
It represents an increase of US$8,846 million from a year ago, according to INDEC’s third-quarter balance of payments and international investment position report. And $3,562 million more than the $243,308 million in June 2022.
If portfolio investments in financial assets and direct investments such as assets, property and real estate are added to US$246,870 – in the case of Miami, Uruguay – or other overseas equity, total Argentine private “assets” amounted to US$377,383 million. A year ago, it was $370.377 million and $376.771 million at the end of June 2022.
Meanwhile, if gross central bank reserves ($37,625 million) are added, total foreign assets rise to $415,008 million versus $413,288 million in the third quarter of 2021.
The INDEC report specifies that “as of September 30, 2022, of the total foreign assets owned by (Argentinean) residents, estimated at $415,008 million, $246,870 million corresponded to currency and deposits (59.5%); followed by equity participation through direct investments, US$ 44,184 million, equity participation through portfolio investments, US$ 39,946 million; and for reserve assets, US$37,625 million.”
Those international reserves that as of September 30, 2022 reached $37,625 million “resulted in a decline of $5,162 million from the immediately preceding quarter, following a reduction in international reserves for balance of payments operations of $3,525 million and a decrease of US$1,636 million resulting from repurchase type and valuation adjustments.”
Meanwhile, the deterioration in the merchandise trade balance was US$6,474 million compared to the result recorded in the same quarter of the previous year, mainly because “the value of exports remained at a similar level while imports recorded an increase for US$5,459 million and the increase in the deficit on services was US$954 million.
For its part, the stock of total gross external debt (public and private) with outstanding face value debt securities as of September 30, 2022 was estimated at $271,776 million. That’s $3,350 million up from $268,416 a year ago.
Overall borrowing is higher because, in the case of public debt, it was driven by the placement and indexing of CER (inflation-adjusted) peso securities.
Thus, while the public debt of the national state grew, and even more if one includes that of the Central Bank, the provinces, public entities and companies, the dollars and other assets are private and largely outside of the State tax authorities, among other things because a high percentage of these so-called “foreign goods” are not declared.
Precisely for these reasons, the government has reached an agreement with the United States to access the data of Argentine accounts in that country.
These “assets” illustrate the outflow or flight of capital, a process that has increased year-on-year amid the depreciation of the peso, low growth and recession, high inflation, a pandemic-aggravated shutdown of economic activity, and restrictions on activity, increase in informality and increase in poverty. Also due to the sharp devaluations of the peso, the weighting of deposits, the obligatory exchanges of bonds, corralitos, corralón, shares, etc.
These data, explains INDEC, derive from foreign currency transactions in the banking and financial system, from the inflows and outflows of funds and capital that are processed through the Central Bank and from the data provided by banks and entities abroad on properties, placements or assets that Argentines have in their countries and estimates of the movements of funds, as would be the case with foreign tourism.
Source: Clarin
