MercoPress. South Atlantic News Agency

Argentina's industries highlight exports needed to make up for lack of US dollars

Leaders of Argentina's Industrial Union (UIA) Wednesday highlighted the country's export potential, particularly that of Vaca Muerta, to make up for the loss of foreign currency affecting the nation's coffers.

According to UIA Chairman Daniel Funes de Rioja, food, industry 4.0, mining, and energy are the sectors that will boost the productive transformation the country needs, ahead of the UIA's 28th Industrial Conference “Producing Transforms. Global reconfiguration and opportunities for Argentine value chains” to be held Thursday.

Funes de Rioja insisted food, knowledge economy, mining, and energy were the sectors on which Argentina can rely to solve the shortage of foreign currency to sustain industrial development, severely hit by the lack of imported inputs.

“Argentina needs to take advantage of the opportunities offered by the new global scenario to develop in food, industry 4.0, mining, and energy. In that last point, we have the potential of Vaca Muerta and the gas pipeline that can provide us with energy independence, the possibility of adding value in the petrochemical sector, and an important export leap. We have to prepare ourselves for the race of constant development without the danger of running out of foreign currency to import inputs”, Funes de Rioja told BAE Negocios.

Industrialists are concerned after having needed to halt production due to the shortage of inputs and they also fear an onslaught from Economy Minister Sergio Massa, who might try to freeze sale prices.

Massa will be among the attendees at Thursday's UIA conference, together with Buenos Aires Mayor Horacio Rodríguez Larreta; Labor Minister Raquel Kismer, and GCT Union leader Héctor Daer, it was announced.

Argentina's Central Bank (BCRA) lost during the first week of November 25% more of its reserves than it did during the whole month of October, it was reported in Buenos Aires.

Disbursements in October amounted to U$S 498 million, while in just seven working days of November it lost U$S 620 million. On Monday alone it sold U$S 150 million, and an additional US$ 80 million vanished Wednesday.

In August of this year, the BCRA deficit had reached US$ 520 million, followed by a surplus of nearly US$ 5 billion in September thanks to the “soybean dollar” scheme, which helped stabilize the foreign currency exchange rate.

The latest figures herald an impending devaluation.