Argentina’s Central Bank will earn $ 15 billion from foreign trade in 2021 – MercoPress


Foreign trade brings in 15 billion dollars to Argentina’s central bank in 2021

Tuesday, January 4, 2022 – 17:57 UTC

If projections hold true, 2021 would be the fifth best performance of this century

Foreign trade represented around $ 15 billion for the Central Bank of Argentina (BCRA) in 2021, according to projections reported Monday in Buenos Aires. It became the fifth-best surplus to date in the 21st century, despite the November deficit of US $ 117 million, the first setback since 2018.

The Argentine administration of President Alberto Fernández closed 2021 with one of the highest hard currency flows of this century. As of November 2021, the surplus already stood at US $ 14,222 million.

In the first 11 months of the year, the BCRA recorded exporters liquidations worth US $ 69,681 million, an increase of 36% compared to the same period of 2020, while it sold foreign currency to pay for imports amounting to US $ 55,460 million. , an improvement of 32%.

However, there was a negative trade balance in November of US $ 117 million resulting from exports worth US $ 5,623 million compared to US $ 5,740 million in imports.

If it reaches the US $ 15 billion surplus, 2021 would be the fifth best performance of this century. In 2009, the balance was US $ 16,800 million; in 2002, US $ 16,600; in 2003, US $ 16,000 and in 2019, US $ 15,900 million.

Foreign Minister Santiago Cafiero said the 2022 sales target was $ 100 billion. Projections for 2021 point to some 77 billion US dollars.

Cafiero’s hopeful announcements appeared to have ignored the drought along the Parana River in addition to the base interest rate hike by the United States with the consequent drop in commodity prices.

A report by consultancy firm GMA directly highlighted agricultural exports worth US $ 30 billion in 2021 for Argentina’s achievements, as well as a convenient international context, although mobility restrictions have had a negative impact on foreign tourism.

The consultancy firm Abeceb also pointed out a larger increase in export prices compared to the growth in import prices, which translated into a gain in terms of trade of 5,670 million euros. US dollars for the first 11 months of 2021.

Abeceb estimates that 2021 ended with exports of around US $ 77,000 million “showing a 40% year-over-year increase and reaching extraordinary historic levels, mainly due to the surge in commodity prices, the strong recovery of industrial products (MOI), driven by Brazil, and the resumption of global growth which has boosted our external sales.

Meanwhile, according to data from the National Institute of Statistics and Censuses (INDEC), in November there was a surplus in agriculture of US $ 397 million. Indec also showed that overseas sales in the first 11 months of 2021 were US $ 71,320 million and purchases were US $ 56,968 million.

Another reason for Argentina’s gains are agro-industrial sales, which amounted to US $ 32,800 million in 2021, according to the Chamber of Petroleum Industry of the Argentine Republic (Ciara) and the Exporters Center. of cereals (CEC), despite the continuous descent of the Paraná. River, with a lower harvest. The oilseed-grain complex, which includes biodiesel and its derivatives, contributed 48% of Argentina’s total exports in 2021, according to Indec.

The country’s main export product was soybean meal, an industrialized by-product (14.2% of total sales), followed by corn (11%) and soybean oil (6.9%).

According to projections by the United States Department of Agriculture (USDA), Argentina is expected to continue to lead the export of soybean oil and meal for the period 2020/21.

The soy complex accounted for 27% of Argentina’s exports last year.