Soybean dollar: the keys to the special change put in place for the grain settlement field

The Central Bank announced on Wednesday the implementation of a special and temporary scheme for agricultural producers to accelerate the sale of the soybean crop.

Here are 13 keys to the special exchange rate announced by the Central Bank and which aims to convince agriculture to liquidate around $ 18 trillion:

• To producers who sell their cereals a higher exchange rate will not be paidbut the measure allows them to do two things with the pesos they get for soybeans.
• 70% of what is sold can be applied to a demand deposit in pesos adjusted by the evolution of the dollar (ie one dollar link).
• “Producers will be able to make a sight deposit in financial institutions with variable daily remuneration based on the evolution of the A3500 exchange rate, known as the Link Dollar, up to 70 percent of the value of grain sales,” detailed in the Central.
• The remaining 30% can be used to purchase dollars at a price equivalent to the official exchange rate plus the national tax and the advance of profits. Those dollars can be bought at any bank.
• That exchange rate today is $ 226. It is the “solidarity dollar” (ie the official one with the PAIS surcharge of 30% and 35% on the Profits account.
• For example of how the measure works: in a sale of 1 million dollars in soybeans, the producer will be able to make a deposit of 700,000 dollars which will be remunerated by the daily evolution of the official dollar. With the remaining $ 300,000, you will be able to purchase around $ 1,327 for the so-called “savings dollar” price, referencing today’s price of $ 226.05 at Banco Nación.
• The advantage to the manufacturer is that those dollars are available for free: they can leave them in the bank, collect them or use them to purchase supplies or carry out any authorized financial transaction.
• Currently, the manufacturer has the alternative of doing a down payment for the total amount of the fixed-term sale for farmers (minimum 30 days), which is also updated for the A3500 dollar, though the availability of these funds is conditional for the period in which it was made.
• According to the Government’s estimate, since this price includes the AFIP withholding in profit account, the exchange rate obtained is actually lower than said price, but this discount will depend on the inflation that accumulates between the time of purchase and the day on which said advance is endorsed in the subsequent profit settlement. For the BCRA, considering the down payment, it is an exchange of $ 200.
• Basically the measure It will be valid until August 31st. The date has a reason: August is the last month in which the demand for foreign exchange for energy remains strong and causes an imbalance in the external accounts.
• The government’s estimate is that the field accumulates up to $ 18 billion without liquidation.
• Who chooses to buy with the solidarity dollar, They will not be able to carry out transactions in MEP dollars for 90 days.
• The measure aims to recognize the exchange value of soybeans as an asset and remove the uncertainty of a devaluation.

“This BCRA decision try to balance agricultural producers with advantages available for different production sectors, “the monetary agency said in a statement.

Among the benefits, he points out the free availability of foreign currency due to the increase in exports achieved compared to the previous year, which affects the manufacturing industry; the Export Investment Promotion Regime or the Knowledge Industry Regime which allows you to apply part of the increase in exports to the payment of wages.

“The goal is to unblock the threat of a sector that thought it was necessary to lower withholding taxes and make agricultural money”the sources specified, who, they assured, is the provision “There was a lot of talk with the banks and the capital market” and that, if it works satisfactorily, “it could be extended to other export sectors”.

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