After the operations confirmed by the companies Mirgor and Newsan, more firms will make foreign debt payments in yuan. These are disbursements that were planned in dollars but they will be made with the Chinese currency. As official sources anticipated to Ámbito, the schedule that is being diagrammed includes companies in the electronics, white goods, motorcycles, tires and oil & gas equipment sectors. In the immediate future, it will result in a relief for the Central Bank which has the equivalent of US$10,000 million in the Asian currency due to the recent extension of the swap obtained by the Minister of Economy, Sergio Massa, in Beijing.
The Government seeks to overcome the adverse shock that the drought caused on the reserves. The objective is to sustain exchange rate stability amid the pressures on the parallel dollars that are aggravated by the electoral uncertainty scenario. On this point, the economic team is looking for resources in different ways that allow a greater degree of intervention.
Despite the skepticism of some market players and private consultancies, the swap tranche extension with China that provides liquidity to u$s 10,000 million It is already reflected in the operations of importers. As this media outlet revealed days ago, trade in that currency has been growing at an accelerated rate. Operations for the equivalent of US$28 million were carried out in January, US$62 million in February, US$69 million in March, US$1,070 million in April and US$1,089 million in May.
At the same time, the Tierra del Fuego-based firms Mirgor and Newsan voluntarily accepted transform your next debt maturities from dollars to yuan for a total of US$630 million. Official sources confirmed to Ámbito that more companies will take that path. It is about other companies in the sector electronics, appliances, motorcycles, tires and oil & gas equipment.
The Government’s intention is to use the largest amount of yuan in operations that have China as the country of origin and release the dollars for other purposes. For example, to accelerate the rest of the imports or to intervene in the markets and keep financial prices at bay.
Will the $10 billion that is available be used? In Economics they do not rule it out. These currencies can cover both drafts for debts and for purchases abroad and, as explained in the Palacio de Hacienda, the financing can even exceed the bilateral deficit that Argentina maintains with China and which is around US$8,000 million per year.
At the same time, the forecasts speak of a improvement in weather conditions that would result in a recovery of about US$1,000 million during the fine harvest about the close to US$18,000 million that were lost during the thick. Negotiations with the International Monetary Fund are also expected to allow fresh funds to be brought to Argentina.
Although the situation of reserves is critical and industrialists point out difficulties in accessing inputs, a recent report from the Ministry of Commerce affirms that between January and May 88% of import requests were approved. Along these lines, it details that the total amount of authorized imports during the first five months of the year reached US$36,757 million, 21% more than in the same period of the previous year.
Industry data continues to show growth in activity. In April the sector showed an improvement of 1.7% year-on-year and 1.2% compared to the previous month. In any case, the government recognizes that there are difficulties. Especially in the purchases of capital goods. Therefore, they are considering raising advances from US$50,000 to US$100,000 (in yuan) for small and medium-sized companies.