Argentina prepares to restrict imports amid foreign exchange shortage -source

BUENOS AIRES (Reuters) – Argentina’s authorities will launch three measures within the coming days aimed toward proscribing imports and preserving the central financial institution’s dwindling international foreign money reserves, a supply instructed Reuters on Tuesday.

The measures come as new information on Monday confirmed a commerce deficit in July of $437 million, the second deficit in a row for Latin America’s third-largest financial system.

“Smoother coordination is required between (Argentina’s tax assortment entity) AFIP, Customs and Commerce, with measures aimed toward ordering imports, taking good care of the Argentine central financial institution’s {dollars} and avoiding abuses,” stated the supply, who requested to not be recognized.

Argentina’s exports within the first seven months of the yr elevated by 22.4% in comparison with the identical interval in 2021, whereas imports jumped 44.6%.

One of many measures seeks to speed up exports by lowering the time-frame for many who import items with out paying taxes. The measure will cut back the time to export the products to 120 days from 360.

That is the case of soybeans, that are imported so as to later be exported as oil.

The 115% hole between the official trade price utilized in international commerce and the trade charges in different markets encourages importers to extend their purchases from overseas, whereas exporters delay their settlements pending an additional fall within the peso.

The federal government additionally contemplates making firms that import providers equivalent to software program or consultancies enter a sophisticated declaration scheme.

Within the first half of the yr, Argentina imported providers price $5 billion.

President Alberto Fernandez’s administration may also search to curb imports of 34 items, together with slot machines, yachts, luxurious planes and cryptocurrency mining machines, by incorporating them right into a non-automatic licensing scheme, which requires prior authorization.

(Reporting by Eliana Raszewski; Extra reporting by Jorge Otaola; Enhancing by Marguerita Choy)