By Jorge Altaura
BUENOS AIRES (Reuters) – Argentina and the International Monetary Fund (IMF) are working on a deal to The country’s exports have been hit hard, a government source told Reuters on Friday.
As a major grain exporter, the heavily indebted country is experiencing a severe drought that is hitting its soybean, corn and wheat harvests and export hopes, which is a huge blow to the government. The plan to rebuild depleted dollar reserves is a blow.
Argentina and the IMF set targets that included rebuilding reserves in a $1 billion debt deal struck last year, replacing a plan that failed to prevent the country from falling into economic crisis.
However, the recent drought and the impact of high prices linked to the Ukraine war have led to talks on easing reserve targets for this year.
“They are finalizing their stockpile targets for this year under the following scenarios: full or increased exports,” the government source said, asking not to be identified because the talks were ongoing, adding that no release date had been set.
The Economy Ministry declined to comment.
The International Monetary Fund did not immediately respond to a request for comment.
According to private analysts, the Argentine central bank’s net foreign exchange reserves are currently around $4.4 billion.
According to the latest review by the International Monetary Fund, Argentina’s net reserves target is a cumulative increase of 5 billion by the end of US$5.5 US$1 billion at the end of March and US$9.8 billion at the end of this year.
Argentinian officials traveled to Washington last week for IMF talks to discuss the latest review of the country’s Q4 expansion fund plan 44. Approval is needed to unlock the $5.3 billion payout, which is key to repaying a similar amount to the IMF in March-April.