Miguel Pesce
The Central Bank has begun to take measures for attract dollars that help rebuild reserves. At the board meeting on Thursday, what was called a “Incentive for external pre-financing of exports”. What is it about? The Control Panel will issue a dollar bill for a period of 180 days, which can be prepaid before the expiration date.
The BCRA statement states that “the dollar account will serve to stimulate the entry of external funds for the pre-financing of large exporters ”.
He then explains that “foreign currency entered through this mechanism, deposited in the local financial system in a foreign currency account, will allow the financial institution to bid for the equivalent of that deposit, a letter in dollars”.
There will be periodic tenders and the interest rate will be set in a tender as a spread on the SOFER rate, currently close to 2.3% per annum.
-The duration will be 180 days with the possibility of pre-cancellation.
The idea would be that of banks or cereals deposit dollars from lines of credit intended to pre-finance exports and contract out bills with those dollars.
What it is is that those dollars are in reserves until it comes time to exchange them for pesos to go out and buy the grains.
Today, as producers sell few cereals, cereal companies do not need to borrow a lot of funds to buy that production.
Typically, banks (local or foreign) lending dollars under the “export pre-financing” format to finance foreign trade operations fairlyr. The cereal companies take the dollars, exchange them for pesos and buy cereals with those pesos ”. These are short-term loans at relatively low rates. Local banks use the dollars they have on deposit for these loans, although they also borrow dollars from foreign banks.
In addition, the Central Bank has allowed access to sight accounts in dollars for exporters who anticipate settlement in more than thirty days compared to the deadline set for each sector.
Source: Clarin
