MercoPress. South Atlantic News Agency
Argentine farmers hold on to their crops waiting for electoral promises, but 'dry' central bank reserves
Argentina's election season has dramatically changed the agricultural landscape in the country, one of the world's breadbaskets. Exporters are now more confident than ever that profits will soar next year, creating a short term impact of plunging sales abroad and reduced cash-flow in the Argentine Central Bank’s coffers, although that could change in 2016. Read full article
Comments
Disclaimer & comment rulesIsn't the problem that the current Argentinian government has so screwed up the economy that they have had to put in place draconian laws restricting dollar ownership.
Nov 05th, 2015 - 10:51 am - Link - Report abuse 0I know of no democratic country in the world where you are forbidden from owning money in whichever currency YOU choose.
I'm currently have funds in Euros, NZ$, OZ$ and US$. For trips I will be taking.
Some of those trips will be in excess of a moth so I hold over £1000 in each foreign currency.
@ 1 zathras
Nov 05th, 2015 - 11:06 am - Link - Report abuse 0But what does the 'moth' (polilla) think about it? :o)
@1 I do much the same….I like to arrive in a country with some cash, especially small notes for tipping. I don't usually carry that much unless I am going to Argentina.
Nov 05th, 2015 - 12:34 pm - Link - Report abuse 0Can the millions of poor eat this stockpile after the devaluation?
Nov 05th, 2015 - 02:46 pm - Link - Report abuse 0I don't get this. Maybe it's because I don't know much about economics but surely if you stockpile a commodity with the hope of improving prices next year then :-
Nov 05th, 2015 - 02:56 pm - Link - Report abuse 0a) you're in deep crap if the prices don't improve
b) by stockpiling you create a glut and force prices down anyway
Isn't this more or less what happened in the EU because of over-production creating the 'butter mountain' and the 'wine lake'?
Rotting roadkillian ignorance isn't distributed solely on the basis of political affiliation. That said, agribusiness always hedges its bets and minimizes its losses.
Nov 05th, 2015 - 03:10 pm - Link - Report abuse 0@ 5 darragh
Nov 05th, 2015 - 05:42 pm - Link - Report abuse 0The clue is in the 'fact' that Macri claims he will “end the restrictions on the dollar trade in the first day of his potential presidency, a move that could bring the official dollar price quickly upwards, making exports even more profitable”.
Not only that but “the sector’s businessmen see holding onto grain as the most profitable course of action ahead of economic reforms that may include a devaluation of the Peso and lower taxes for the sector.”
But who will PAY for these changes? As ever, the local consumer (for imports) or the international consumer EXCEPT that if the dollar gets stronger, restrictions are lifted immediately and the peso devalued the EXPORTERS get a good payday thus keeping their businesses afloat instead of being raided each year as happened with TMBOA “in charge”.
Removing dollar restrictions on imports will also allow businesses whose starting point is material from abroad to increase production and hopefully increase profits thus sustaining their businesses, not closing them.
@7 This is a slick move. It makes him the bad guy for completing the Kiciloff swindle. Why would we own Argentine stocks going into the devaluation though? Watch chile's market get nailed on this news. Inevitable devaluation will still somehow be a surprise.
Nov 05th, 2015 - 09:24 pm - Link - Report abuse 0@7 Chris
Nov 05th, 2015 - 11:18 pm - Link - Report abuse 0OK thanks for that
kind regards
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