The Government of Argentina announced during the weekend the creation of yet another foreign currency exchange rate; one to be applied particularly to wine exports, effective next month.
Economy Minister Sergio Massa made the announcement during the annual meeting of the Argentine Wine Corporation (Coviar), in the western province of Mendoza. At the event, Massa explained that the exchange measure seeks to benefit producers affected by frost and hail, in addition to generating greater competitiveness in exports.
On April 1, with the exchange competitiveness that the State puts in place for development, we must have more Argentine wine in the world, Massa said. Further details of the measure were yet to be disclosed, but it was clear that Massa was following on the example of the so-called soy dollar, a differentiated exchange rate established in 2022 for the soybean complex, which helped increase foreign currency liquidations and boost the country's hard currency reserves.
Last year, in the decision to recover markets and consolidate reserves, we tried to implement an export strengthening program for a sector, Massa explained. As from April 1st, we are going to support it in all regional economies, starting with the wine industry to recover markets and give them a chance to face the loss caused by hail and frost, the Minister said during the convention.
The measure aims at strengthening export competitiveness, gaining markets and consolidating the growth and productive development of those who generate 330,000 jobs in Argentina. Grape production is estimated to have dropped 21% over the last year due to weather conditions.