The UIA asked Pesce that the BCRAs “allow the continuity of the production process”

The Argentine Industrial Union (UIA) has asked the Central Bank to create a work table prevent exchange rate widening “avoid complications in value chains”, with factory shutdowns due to lack of inputs. It was after a meeting this Monday between the head of the manufacturing plant, Daniel Funes from Riojaand the head of the BCRA, Miguel Pesce.

“During the meeting, the scope of application of the new foreign exchange market regulation measures – included in Communication” A “7532 – and their impact on access to imported inputs essential for production was discussed”, reads in a statement from the UIA.

During the meeting, Funes de Rioja asked Pesce to set up a work table “which allows the continuity of the production process”. The head of the production plant specified that what they are looking for is that this dialogue table with the authorities “avoids complications in the value chains, guarantee the supply of the internal marketlet them continue to grow exports and it doesn’t affect the sectors that generate foreign currency“.

The meeting with Pesce took place a few hours after the publication of the Communication “A” 7532 of the Central Bank, which has further limited the quotas available to companies that require access to the foreign exchange market to pay for imports. With this new standard, all companies that ask the Central a 5% more dollars of those who accessed in 2021, they have to wait to access those dollars for a period of 180 days.

SMEs that imported less than one million dollars in 2021 are an exception to this rule: for these companies, access to official dollars it is up to 15% above its imports in the previous year. Imports of energy and medicines have also been exempted from this new variant of stocks.

Funes de Rioja explained that “access to imported inputs is crucial for the production process Do not stop. The industry is helping by adding value, investing and creating jobs so that Argentina transforms the recovery into growth. We want to continue on this path, which for us implies the continuity of all production processes “.

Shortly before the meeting with Pesce, in a radio statement, Funes had stated that the UIA had proposed to the authorities to guarantee access to foreign currency for the import of supplies, spare parts and machinery. “It is not a simple import but those specifics that make the continuity of the industrial production process“said the boss.

According to the statement released by the UIA, the new BCRA regulation provides that imports of services and goods that were subject to non-automatic licenses are financed for 180 days – as was the case for the import of supplies with automatic licenses deriving from the categorization of SIMIs in A, B and C-, “thus hindering access to the foreign exchange market ”.

“In the coming days, the UIA technical offices will continue with the analysis of the new regulations in order to evaluate its impact“added the entity.