Central Bank of Argentina Delays Dollar Disbursements to Importers
The government of Argentina is accused of delaying dollar disbursements to importers by using freight costs as an excuse. Argentine importers need government approval to receive dollars due to exchange controls.
- Government denies dollar requests for freight payments exceeding 15% of merchandise value
- Customs Manager denies claims, stating the payments system is working as usual
- Payments delayed due to inconsistency, draining government reserves
- Argentina’s net reserves reach historically low levels of -$7 billion
Chinese Yuan-Based Sales Also Rationed
Argentine government measures also affect allocation of yuan reserves to companies using it as a settlement currency to pay providers.
- Yuan-based allocations reduced from $90 million per day to less than $10 million daily
- Reduction potentially linked to failure to reach agreement with IMF for $4 billion disbursement
- Argentina has to pay $2.7 billion to IMF by end of July
- Government might use approved Chinese swap line to make payment
Hot Take: The delays in dollar disbursements and rationing of yuan reserves by the Central Bank of Argentina reflect the country’s struggling economy and its limited foreign currency reserves. These measures could further impact importers and businesses relying on international transactions. The government must find a solution to stabilize the situation and ensure the smooth functioning of trade operations.
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