arrow-grey
News
August 10, 2015

DUE TO THE SHORTAGE OF FOREIGN CURRENCIES, THE STRENGTHS ON IMPORTS ARE STRENGTHENED

11824988_580418615430632_405524353354839491_n

 

Imports stopped again in the final stretch of the elections, as industry operators feared. The fall in exports and the need to guarantee dollars to pay the debt maturities of the coming months, including the US$ 6 billion of the Boden 15, are behind the causes.
The trade balance in the first six months of the year left only US$ 1,232 million, less than half that of the previous year. That data also explains why the Government steps on imports as the weeks go by.
June was good for imports in general. The fall was 7% globally and in some items there were growths, such as the case of consumer goods. "Julio started well but it started to get complicated in the last few weeks," explained the dispatcher Diego Dumont, from DMF Comercial. "We don't know the reasons. It may be linked to containing the dollar and the need to secure the dollars to pay the debt. Even several importers who do not usually have problems. The reading is that they seek to slow down a bit before the October elections to see how they arrive, "added the dispatcher.
According to sources in the importing sector, purchases slowed down and there were also problems in turning currencies under the orbit of the Central Bank, particularly for DJAIs of more than US$ 10,000. The operators of the sector indicate, in addition, that the ratings can be further slowed down during August to regulate the need for dollars and define by October if it is necessary to turn on the tap, according to the electoral mood.
One of the central points is the drop in exports, which does not diminish and makes it necessary to increase the pressure on imports to arrive with some surplus at the end of the year. Last month, exports fell 14%, double what imports fell.
According to the director of the DNI consulting firm, the drop in purchases in Latin America has an impact on Argentine exports. Behind the phenomenon is the fall of the Brazilian market. "The 66% of Argentine industrial exports go to Latin America. The 52%, to Mercosur ”, detailed Elizondo. In this framework, purchases by Latin America fell 9%. According to the former director of Fundación Exportar, this impacts on value-added goods. "The 43% of Argentine exports of medium and high technological content is directed to South America," he explained. The 36% of total Argentine exports goes to the region.

SOURCE: PROFILE