The head of the Chamber of the Oil Industry (CIARA) revealed that the Government agrees to lower the taxes but not in the time frame that the countryside needs.
In the closing panel of the IDEA Rosario Experiencethe owner of Chamber of the Oil Industry (CIARA), Gustavo Idigorasestimated that if the Government lower the withholdings from 33% to 25%, it would be possible to reach US$5 billion in settlements in the next six months.
Foreign currency inflows are key for the Government, as it needs to strengthen reserves in a scenario of high debt maturities in 2025.
Idígoras also revealed that CIARA has been in dialogue with the Government on the issue, mentioning that “They agree with the proposal, not with the time frames we tell them.”
Between June and July, the Central Bank was unable to accumulate reserves, as the agro-industry lowered the level of foreign currency settlement.
In addition, the monetary authority had to intervene in the foreign exchange market, selling foreign currency.
Foreign exchange settlement grew 32.3% monthly in July and almost 36% annually against 2023 And although 5% more has been sold so far in 2024 than last year, currency, climate and market uncertainty continue to affect producers’ sales decisions.
Producers expect a jump in devaluation that, with the possibility of access to financing in pesos at attractive rates, will motivate them to accelerate contracts.
Source: Ambito
