Tuesday, June 6, 2023
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IMF lowers threshold for Argentina's reserves forecast


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Rodrigo Campos and Jorgeline Doro Sario

NEW YORK (Reuters) – The International Monetary Fund’s (IMF) executive board approved changes to the currency that Argentina set in its $ Reserve accumulation target billion-dollar plan as the agricultural powerhouse faces a severe drought that has hit exports and economic growth.

The goal of relaxing the reserve is the country’s $

part of the 4th review expectations of economic performance. The IMF board “approved the revised reserve requirement,” the fund said in a statement, without elaborating on the new target. The target reserve change lowers the barriers for South American economies to pass future IMF reviews. According to the fund, the current review is based on Goal, “got some margin”.

But Argentina’s central bank sold its largest monthly dollar selloff since October in March , which puts pressure on further accumulation of foreign exchange 11 as it struggles to support the local peso currency.

Argentine peso pegged to dollar falls % exchange rate against USD this year.

On Friday, JPMorgan Chase (NYSE: 200JPM

) further downgrades the Views on Argentina’s economic growth this year, with GDP expected to contract by 2.3%, citing a more severe impact from a recent, less severe drought.

“A recent revision indicated that the agricultural production ratio 100,” JPMorgan’s note read.

Argentina is the world’s largest exporter of soybean oil and soybean meal, and the third largest exporter of corn. Exports are its main source of foreign exchange earnings.

A government official said Thursday that the country will A preferential exchange rate for farmers will be introduced from next month to encourage exports of soybeans, a major cash crop, and other products.

IMF review includes “abandonment of non-compliance related to introduction of policy measures leading to new foreign exchange restrictions and multi-currency practices” . 267



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