Version: 4 (current) | Updated: 11/13/2025, 6:21:42 AM
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@file_pinax -> has metadata -> @pinax_metadata:document {title: "Argentina's Economic Crisis and Energy Subsidies", creator: [@jonathan_gilbert, @ignacio_olivera_doll], created: @date_2022_07_06, language: "en", subjects: [@economic_crisis, @energy_subsidies, @inflation, @imf, @currency_devaluation, @political_instability, @economic_policy, @fiscal_deficit, @monetary_policy], place: [@argentina, @buenos_aires, @bragado]}
@file_68735786_argentina -> documents -> @bloomberg_article_2022_07_06:document {author: @jonathan_gilbert, published: @date_2022_07_06, title: "Argentina's Economic Crisis and Energy Subsidies", url: "PLACEHOLDER"}
@jonathan_gilbert:person {full_name: "Jonathan Gilbert"}
@ignacio_olivera_doll:person {full_name: "Ignacio Olivera Doll"}
@silvina_batakis:person {full_name: "Silvina Batakis", role: "Economy Minister"}
@martin_guzman:person {full_name: "Martín Guzmán", role: "Former Economy Minister"}
@cristina_fernandez_de_kirchner:person {full_name: "Cristina Fernández de Kirchner", role: "Vice President"}
@lucas_caldi:person {full_name: "Lucas Caldi", role: "Credit analyst"}
@julian_rojo:person {full_name: "Julian Rojo", role: "Analyst"}
@nicolas_gadano:person {full_name: "Nicolás Gadano", role: "Consultant and university professor"}
@nicholas_watson:person {full_name: "Nicholas Watson", role: "Latin America analyst"}
@sergio_massa:person {full_name: "Sergio Massa", role: "Economy Minister"}
@guillermo_michel:person {full_name: "Guillermo Michel", role: "Head of Customs"}
@lisandro_cleri:person {full_name: "Lisandro Cleri", role: "Central Bank Vice‑President"}
@gustavo_idigoras:person {full_name: "Gustavo Idigoras", role: "President of Ciara‑Cec"}
@eugenio_irazuegui:person {full_name: "Eugenio Irazuegui", role: "Head of Research at Enrique Zeni"}
@ariel_suderman:person {full_name: "Arlan Suderman", role: "Chief commodities economist at StoneX"}
@ariel_striglio:person {full_name: "Ariel Striglio", role: "Farmer"}
@francisco_perkins:person {full_name: "Francisco Perkins", role: "Farmer"}
@imf:organization {full_name: "International Monetary Fund"}
@general_mosconi:organization {full_name: "General Mosconi Think Tank"}
@ciara_cec:organization {full_name: "Ciara‑Cec", description: "Association representing >40 % of Argentina’s crop exports"}
@central_bank:organization {full_name: "Banco Central de la República Argentina"}
@economy_ministry:organization {full_name: "Economy Ministry of Argentina"}
@portfolio_personal_inversiones:organization {full_name: "Portfolio Personal Inversiones"}
@medley_global_advisors:organization {full_name: "Medley Global Advisors"}
@enrique_zeni:organization {full_name: "Enrique Zeni", description: "Grains brokerage in Rosario"}
@teneo:organization {full_name: "Teneo"}
@economic_crisis:concept {description: "Argentina’s prolonged macro‑economic downturn"}
@energy_subsidies:concept {description: "Government subsidies for electricity and natural gas"}
@inflation:concept {description: "Rapid rise in consumer prices in Argentina"}
@currency_devaluation:concept {description: "Loss of peso value versus foreign currencies"}
@political_instability:concept {description: "Infighting within the ruling Peronist coalition"}
@economic_policy:concept {}
@fiscal_deficit:concept {}
@monetary_policy:concept {}
@nodo:concept {description: "180‑day central‑bank note offered to exporters to hold dollars"}
@imf_agreement:document {description: "IMF program with targets to cut fiscal deficit and curb money‑printing"}
@economy_minister_change:event {when: @date_2022_07_06, description: "Silvina Batakis sworn in, replacing Martín Guzmán"}
@energy_subsidy_reduction:event {when: @date_2022_07_06, description: "Government pledges to trim energy subsidies by 0.6 % of GDP", related_to: @imf_agreement}
@crop_export_request:event {when: @date_2022_08_12, description: "Government asks crop exporters to bring $1 bn in foreign currency within a week"}
@inflation_2022:event {when: @date_2022_06, description: "Inflation reaches 64 % YoY", rate: {value: 64, unit: "%"}}
@devaluation_risk:event {when: @date_2022_07, description: "Risk of peso devaluation as black‑market dollar widens"}
@bond_market_fall:event {when: @date_2022_07_06, description: "Argentine sovereign bonds slip 0.4 cents on the dollar"}
@reserves_fall:event {when: @date_2022_08, description: "Foreign‑currency reserves fall to lowest level in almost six years"}
@silvina_batakis -> succeeded -> @martin_guzman {when: @date_2022_07_06}
@silvina_batakis -> allied with -> @cristina_fernandez_de_kirchner
@martin_guzman -> negotiated -> @imf_agreement {when: @date_2022_03}
@lucas_caldi -> works at -> @portfolio_personal_inversiones
@julian_rojo -> works at -> @general_mosconi
@nicolas_gadano -> works at -> @university_of_buenos_aires {role: "consultant"}
@nicholas_watson -> works at -> @teneo
@sergio_massa -> announced -> @crop_export_request:event
@guillermo_michel -> member of -> @economy_minister_change:event
@lisandro_cleri -> member of -> @crop_export_request:event
@gustavo_idigoras -> member of -> @crop_export_request:event
@ciara_cec -> represents -> @argentina_crop_exporters:organization {description: "Crop export and processing companies"}
@central_bank -> introduced -> @nodo
@central_bank -> offers -> @nodo {interest_rate: "market‑linked", term_days: 180}
@economy_minister_change:event -> involved -> [@silvina_batakis, @martin_guzman, @cristina_fernandez_de_kirchner]
@crop_export_request:event -> participants -> [@sergio_massa, @guillermo_michel, @lisandro_cleri, @gustavo_idigoras, @ciara_cec]
@energy_subsidy_reduction:event -> challenged by -> @political_instability
@energy_subsidy_reduction:event -> threatens -> @fiscal_deficit
@energy_subsidy_reduction:event -> linked to -> @monetary_policy
@inflation_2022:event -> drives -> @farmers_hoarding:event {description: "Farmers hoard soy as hedge against inflation"}
@farmers_hoarding:event -> involves -> [@ariel_striglio, @francisco_perkins, @eugenio_irazuegui]
@ariel_striglio -> traded -> @soy:commodity {purpose: "buy inputs, pay debt"}
@francisco_perkins -> kept back -> @soy:commodity {portion: "about half of harvest"}
@eugenio_irazuegui -> works at -> @enrique_zeni
@ariel_suderman -> comments on -> @farmers_hoarding:event {quote: "In Argentina they treat grain like money in the bank"}
@bond_market_fall:event -> reflected in -> @sovereign_bonds:document {type: "benchmark sovereign notes"}
@reserves_fall:event -> caused by -> @energy_subsidies {annual_cost: "$13.5 bn (12 months to June)", previous_cost: "$7 bn"}
@government -> funded by -> @money_printing:concept {description: "Domestic debt issuance and monetary expansion"}
@government -> faces -> @political_instability
@government -> seeks -> @foreign_currency_reserves:concept {target: "$1 bn in one week"}
@crop_export_request:event -> proposes -> @nodo {function: "deposit dollars, earn interest, support reserves"}
@file_pinax -> references -> [@economic_crisis, @energy_subsidies, @inflation, @imf, @currency_devaluation, @political_instability, @economic_policy, @fiscal_deficit, @monetary_policy]<!--
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<p>6 july 2022</p><p>By</p><p><a href="https://www.bloomberg.com/authors/ATBCxNj906c/jonathan-gilbert">Jonathan Gilbert</a></p><p>July 6, 2022 at 1:00 PM GMT+1<em>Updated onJuly 6, 2022 at 5:06 PM GMT+1</em></p><h2>Listen to this article</h2><p>4:03</p><h2>Share this article</h2><p>Follow the authors</p><p><a href="https://www.twitter.com/jongilbert9">@jongilbert9</a></p><p>+ Get alerts forJonathan Gilbert</p><h2>In this article</h2><p><a href="https://www.bloomberg.com/quote/NG1:COM">NG1</a></p><p><strong><a href="https://www.bloomberg.com/quote/NG1:COM">Generic 1st 'NG' Future</a></strong></p><p><a href="https://www.bloomberg.com/quote/NG1:COM">8.63</a></p><p><a href="https://www.bloomberg.com/quote/NG1:COM">USD/MMBtu</a></p><p><a href="https://www.bloomberg.com/quote/NG1:COM">-0.13-1.53%</a></p><p>A sudden change of economy minister in Argentina that gives the leftist faction of the ruling coalition a grip on the country’s finances poses a risk to a key part of its International Monetary Fund agreement -- weaning the population off energy subsidies.</p><p>Silvina Batakis was sworn in this week after Martin Guzman, an economic moderate who negotiated the IMF <a href="https://www.bloomberg.com/news/terminal/RE079VT1UM0W">deal</a> earlier this year, resigned in part because government officials appointed by Vice President Cristina Fernandez de Kirchner blocked him from implementing energy policy as he wished. Batakis is an ally of Kirchner, a long-time antagonist of global markets and the IMF.</p><p>To be sure, Batakis said in a radio <a href="https://www.bloomberg.com/news/terminal/REJWDVDWX2PU">interview</a> Tuesday that she’d push ahead with reducing energy subsidies as she <a href="https://www.bloomberg.com/news/articles/2022-07-05/argentina-s-new-economy-minister-vows-continuity-amid-selloff">tries </a>to calm investors whose gut reaction to her arrival was to sell Argentine assets. Argentina’s bonds continued falling on Wednesday, with benchmark sovereign notes slipping 0.4 cent on the dollar in early trading to around 20 cents.</p><p><a href="https://www.bloomberg.com/news/articles/2022-07-05/argentina-s-new-economy-minister-vows-continuity-amid-selloff">Read more: Argentine assets plunge on economy minister’s first day</a></p><p>Several analysts insisted that a question mark hangs over Batakis’s commitment to the spending cuts penned by Guzman and the IMF. In the same interview, she warned that some targets under the IMF program would have to change. This year, the program aims to trim energy subsidies by 0.6% of gross domestic product.</p><p>“There’ll be less willingness to follow through with subsidy cuts, which will probably stop them from becoming the fiscal anchor that Guzman wanted,” said <a href="https://www.linkedin.com/in/lucas-ariel-caldi-619a7aab/?originalSubdomain=ar">Lucas Caldi</a>, a credit analyst at Portfolio Personal Inversiones in Buenos Aires.</p><p>Billions of dollars a year in power and natural gas subsidies are one of the drivers of Argentina’s fiscal deficit, leading to loose monetary policy and imbalances like inflation. But reducing them is a delicate dance for a coalition that’s in power thanks largely to voters seeking a return to the generous welfare state of the 2003-2015 era, when Kirchner and her late husband governed.</p><p><a href="https://www.bloomberg.com/news/articles/2022-03-09/argentina-s-imf-backed-subsidy-cuts-are-boon-to-power-producers">Read more: Argentina’s subsidy cuts to benefit power producers</a></p><p>Guzman oversaw hikes to energy bills <a href="https://www.bloomberg.com/news/terminal/RCPAB8T1UM0X">this year</a> and last after prices had been <a href="https://www.bloomberg.com/news/terminal/QSN02LDWRGG0">frozen</a> for two years. But he was struggling to win support from Kirchner loyalists for more increases. When consumers pay more, the government pays less. In addition, Argentina is yet to implement a so-called “segmentation,” a politically-sensitive policy that’d see payments to some middle-class families scaled back.</p><p>“Guzman defended segmentation tooth and nail, but now an uncertainty arises,” Caldi said.</p><p>Government energy spending has been soaring recently as Argentina imports <a href="https://www.bloomberg.com/news/terminal/RCFZM8DWRGG0">expensive</a> fuel cargoes to meet winter demand. Subsidies for the 12 months through June were $13.5 billion, way up from the more than $7 billion in the previous 12-month period, said Julian Rojo, an analyst at the General Mosconi think tank in Buenos Aires. In May, consumers paid just 36% of the cost of producing power, which accounts for most of the subsidies, down from 42% in March and 39% in April, according to Portfolio.</p><p>Summer of chaos. Everything you need to know, every weekday.The Readout with Allegra Stratton on the big issues shaking the UK.Sign up to this newsletter</p><p>Spending could grow further if Batakis opts to devalue the peso but shields voters already grappling with 61% inflation by applying slow -- or no -- increases to energy bills. That’s because much of Argentina’s energy production pricing is linked to the dollar. The difference between the official, controlled foreign exchange rate and weaker market rates is <a href="https://www.bloomberg.com/news/terminal/REJYJNDWLU68">widening</a>, a trend that often augurs a devaluation.</p><p><a href="https://www.bloomberg.com/news/articles/2022-06-29/three-signs-show-that-argentina-is-heading-to-a-devaluation">Read more: Three signs Argentina is heading to a devaluation</a></p><p>“The gap in the exchange rates that’s opening up is unacceptable,” making a devaluation likely, said Nicolas Gadano, an Argentine consultant and university professor who specializes in the intersection of economics and energy. “That could produce a situation where consumers cover even less of the price of energy.”</p><p>Still, investors will have to wait to see Batakis’s true colors. “Batakis is a relatively recent convert to Kirchnerismo and was more of a ‘rational heterodox’ in the past,” Nicholas Watson, a Latin America analyst for Teneo, wrote in a note. “Just how rational and how heterodox she is now will become clear in the coming week.”</p><p></p><p></p><p>Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of <a href="https://www.ft.com">FT.com</a> <a href="https://help.ft.com/help/legal-privacy/terms-conditions/">T&Cs</a> and <a href="https://help.ft.com/help/legal-privacy/copyright/copyright-policy/">Copyright Policy</a>. Email <a href="mailto:licensing@ft.com">licensing@ft.com</a> to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be <a href="https://www.ft.com/tour">found here</a>. <br><a href="https://www.ft.com/content/a27ee254-6042-4632-a161-8ae005bdab1c">https://www.ft.com/content/a27ee254-6042-4632-a161-8ae005bdab1c</a><br><br>Confidence in the Argentine economy is evaporating as the government struggles with political infighting, an ever-increasing pile of domestic debt and inflation hurtling towards 90 per cent. The US dollar has shot to new highs on the black market as Argentines limited to buying $200 per month rush to money-changers to dump their fast-devaluing pesos. On Friday, dollars were selling on the streets of Buenos Aires for 337 pesos, up 15 per cent in just one week. The rapid deterioration in sentiment and the government’s increasing difficulty in funding itself are raising fears of a full-blown economic crisis similar to those which have wracked the South American grain exporter periodically over the past half century. “The risk of an acceleration in the pace at which the Argentine economy is worsening is significant,” Citi warned this month. The gap between the black market dollar and the artificially controlled official rate has widened to more than 150 per cent — a level last seen during Argentina’s hyperinflation in 1989-1990, according to broker Portfolio Personal Inversiones. Argentina has been largely cut off from international debt markets since its default in 2020. The government is instead funding itself through money-printing and domestic debt, most of which is inflation-linked and comes at ever-higher rates of interest. President Alberto Fernández has ruled out the prospect of a one-off devaluation. Yet many Argentines and bank economists fear the economy will get a lot worse before it gets better. “Sales of dollars are crazier than ever,” Adán, 28, who changes money illegally in central Buenos Aires so preferred not to give his full name, told the Financial Times. “The only thing customers don’t want to hold is pesos . . . many ask questions about what’ll happen next.” The abrupt resignation of economy minister Martín Guzmán on July 2 followed months of squabbling inside the ruling Peronist coalition. It heightened concern over the ability of Fernández’s weak and unpopular government to deal with the fast-deteriorating situation. “I decided to make a big purchase that I’d been putting off because I knew the markets would go bonkers when the minister resigned,” Paige Nichols, a 35-year old marketing consultant, said while shopping in Buenos Aires. Guzmán left just three months after nesident, Cristina Fernández de Kirchner and her radical allies. Kirchner believes the Peronists should instead spend more to shield voters from rising inflation ahead of the 2023 presidential race. Recommended FT News Briefing podcast9 min listen A new CEO for Credit Suisse Despite Guzmán’s untimely exit, IMF officials believe that the economic targets the fund agreed with Argentina can still be met by his successor, Silvina Batakis, if she moves quickly. Kristalina Georgieva, the IMF’s managing director, said Batakis understood “the purpose of fiscal discipline” and described a “very good” first call with the minister. But events risk overtaking Batakis, a little-known figure whom few believe has the political clout to achieve the cuts in energy subsidies and reductions in money-printing that eluded her predecessor. “No measures will be effective until it becomes clear that vice-president Cristina and her group won’t sabotage Batakis,” said political risk group Eurasia in a note. Inflation, meanwhile, reached 64 per cent a year in June and is forecast to accelerate beyond 90 per cent by the end of the year, according to Morgan Stanley. Despite high world commodity prices, Argentina’s net foreign currency reserves are hovering at just $2.4bn. Costly energy imports are partly to blame but the country’s grain exporters are also hoarding their harvest because they fear an imminent devaluation, rather than shipping and receiving payment in pesos at the unfavourable official rate. Argentina’s sovereign debt to private creditors, which was only restructured in 2020, is trading back in distressed territory. And the country is expected to enter a brief recession this year, with contractions in the second and third quarters, according to a central bank survey. Ignacio Labaqui, senior analyst at Medley Global Advisors in Buenos Aires, said economic factors were only part of the problem. “Even if the government announced a coherent economic plan, Fernández lacks credibility,” he said. The ruling coalition has failed to reassure the public, “it is a matter of when they devalue, not a matter of if”. Two pillars of the IMF deal are to reduce the fiscal deficit over three years and to curb central bank money-printing to fund it. Buenos Aires agreed to these belt-tightening conditions in exchange for a four-and-a-half-year grace period on IMF payments, with full repayment by 2034. Recommended The FT ViewThe editorial board Time for the IMF to show Argentina some tough love Argentina is limited to printing 765bn pesos ($5.8bn) for the full year to fund its deficit. But the central bank has already printed 630bn pesos this year, more than half of that over the past month and a half. In an attempt to encourage investors to buy Treasury notes, last week Argentina’s central bank promised investors that if prices fell, the bank would protect the investment. Analysts said this could lead the bank to print even more pesos to back the new guarantee. An estimated 900bn pesos ($6.8bn) of local currency debt is coming due in September alone. Confidence in the government’s ability to roll over this borrowing is dwindling amid concerns about its ability to pay and a possible imminent devaluation, despite official denials. Reducing the fiscal deficit before interest payments from 3 per cent of GDP last year to 2.5 per cent in 2022 as outlined in the IMF agreement also looks tough to meet. Energy subsidies, one of the main reasons for the red ink, almost doubled over the 12 months to June, according to Julian Rojo, an analyst at General Mosconi, a local think-tank. On top of the deteriorating economy is Argentina’s fractious politics ahead of next year’s elections, which the Peronists are likely to lose. “The risk of a government breakdown is not negligible in Argentina, given the ongoing economic crisis. The government’s ability to complete the current presidential term is a concern,” Labaqui said.</p><p></p><h1>https://www.bloomberg.com/news/articles/2022-08-12/argentina-asked-crop-exporters-to-bring-1-billion-next-week?sref=wOrDP8KX</h1><h1>Argentina Asked Crop Exporters to Bring $1 Billion Next Week</h1><ul><li><p>Government seeks to boost reserves at dangerously low levels</p></li><li><p>Companies haven’t said to what extent they’ll cooperate</p></li></ul><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!gPoR!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F3e60156c-aa96-440c-b753-e0442f923aef_1000x666.jpeg" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" 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harvester cuts wheat during a harvest in Bragado, Argentina, on Thursday, Dec. 2, 2021.&nbsp;" title="A harvester cuts wheat during a harvest in Bragado, Argentina, on Thursday, Dec. 2, 2021.&nbsp;" srcset="https://substackcdn.com/image/fetch/$s_!gPoR!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F3e60156c-aa96-440c-b753-e0442f923aef_1000x666.jpeg 424w, https://substackcdn.com/image/fetch/$s_!gPoR!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F3e60156c-aa96-440c-b753-e0442f923aef_1000x666.jpeg 848w, https://substackcdn.com/image/fetch/$s_!gPoR!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F3e60156c-aa96-440c-b753-e0442f923aef_1000x666.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!gPoR!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F3e60156c-aa96-440c-b753-e0442f923aef_1000x666.jpeg 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><div class="pencraft pc-reset icon-container restack-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-refresh-cw"><path d="M3 12a9 9 0 0 1 9-9 9.75 9.75 0 0 1 6.74 2.74L21 8"></path><path d="M21 3v5h-5"></path><path d="M21 12a9 9 0 0 1-9 9 9.75 9.75 0 0 1-6.74-2.74L3 16"></path><path d="M8 16H3v5"></path></svg></div><div class="pencraft pc-reset icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></div></div></div></div></a><figcaption class="image-caption">A harvester cuts wheat during a harvest in Bragado, Argentina, on Thursday, Dec. 2, 2021. <em>Photographer: Sarah Pabst/Bloomberg</em></figcaption></figure></div><p>By</p><p><a href="https://www.bloomberg.com/authors/ATZXCzxbgwU/ignacio-olivera-doll">Ignacio Olivera Doll</a></p><p>August 12, 2022 at 5:15 PM GMT+1</p><h2>Share this article</h2><p>Follow the authors</p><p><a href="https://www.twitter.com/ioliveradoll">@ioliveradoll</a></p><p>+ Get alerts forIgnacio Olivera Doll</p><p>Argentina’s government has asked the country’s crop export and processing companies to make sales equivalent to $1 billion over the next week as it seeks to bolster reserves, according to people with direct knowledge of the discussions. </p><p>The government discussed with Ciara-Cec, a group that represents more than 40% of Argentina’s exports, a mechanism implemented this week that aims to encourage the sale of crops and bring in hard currency to the country. Members of the association have showed willingness to cooperate but have not said to what extent it will comply with the request, said the people, who asked not to be named because talks are private. </p><p>Representatives for Ciara-Cec, the economy ministry and the central bank did not immediately reply to a request for comment. </p><p>The move comes as Argentina’s reserves fall to <a href="https://www.bloomberg.com/news/articles/2022-08-02/argentina-is-running-out-of-cash-needed-to-stave-off-devaluation">dangerously</a> low levels. Shipments of oilseeds and grain were <a href="http://www.ciaracec.com.ar/ciara/descargar/03012022_220103-liquidacion-de-divisas-03-01-22.pdf">worth</a> almost $33 billion last year, but this year sales of soybeans that growers harvested from late-March to June have been slower amid high inflation and bets that the government will eventually weaken the currency, improving terms for farmers. </p><p><a href="https://www.bloomberg.com/news/articles/2022-07-15/inflation-at-64-has-argentine-soy-farmers-hoarding-all-they-can">Read More: Inflation at 64% Has Argentine Soy Farmers Hoarding All They Can</a></p><p>Growers sold 20.9 million metric tons through July 20 of the 44 million tons they produced, according to the government, leaving roughly $13 billion still to trade based on Argentine spot prices.</p><p>While farmers have been slow to sell their crops, exporters play a role, too. Because of so-called delayed-price contracts in Argentina, over a third are still unpriced. Companies may keep these supplies at ports until farmers lock in prices to avoid holding a long position on the peso.</p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!ImVm!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!ImVm!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png 424w, https://substackcdn.com/image/fetch/$s_!ImVm!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png 848w, https://substackcdn.com/image/fetch/$s_!ImVm!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png 1272w, https://substackcdn.com/image/fetch/$s_!ImVm!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png 1456w" sizes="100vw"><img src="https://bucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com/public/images/f3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png" width="827" height="465" data-attrs="{"src":"https://bucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com/public/images/f3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png","srcNoWatermark":null,"fullscreen":null,"imageSize":null,"height":465,"width":827,"resizeWidth":null,"bytes":null,"alt":"Argentina's reserves fell to the lowest level in almost 6 years in August","title":null,"type":null,"href":null,"belowTheFold":true,"topImage":false,"internalRedirect":null,"isProcessing":false,"align":null,"offset":false}" class="sizing-normal" alt="Argentina's reserves fell to the lowest level in almost 6 years in August" title="Argentina's reserves fell to the lowest level in almost 6 years in August" srcset="https://substackcdn.com/image/fetch/$s_!ImVm!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png 424w, https://substackcdn.com/image/fetch/$s_!ImVm!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png 848w, https://substackcdn.com/image/fetch/$s_!ImVm!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png 1272w, https://substackcdn.com/image/fetch/$s_!ImVm!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff3f5a884-0b2d-46e7-aa60-8428bcaa5e66_827x465.png 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><div class="pencraft pc-reset icon-container restack-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-refresh-cw"><path d="M3 12a9 9 0 0 1 9-9 9.75 9.75 0 0 1 6.74 2.74L21 8"></path><path d="M21 3v5h-5"></path><path d="M21 12a9 9 0 0 1-9 9 9.75 9.75 0 0 1-6.74-2.74L3 16"></path><path d="M8 16H3v5"></path></svg></div><div class="pencraft pc-reset icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></div></div></div></div></a><figcaption class="image-caption"> </figcaption></figure></div><p>To pressure the companies, the government has said it might delay monthly tax returns, which would increase their costs, said one of the people. </p><p>Summer of chaos. Everything you need to know, every weekday.The Readout with Allegra Stratton on the big issues shaking the UK.Sign up to this newsletter</p><p>In the meeting, the government executives also said the plan is for greenbacks to enter through a new mechanism developed by the central bank. The method proposes that crop exporters bring dollars into the country equivalent to exports they expect to make in the near future and hold them in a local bank account, receiving an interest rate. As an incentive, the central bank will offer private banks a new 180-day note, known as Nodo, allowing them to pay interest on exporters’ deposits.</p><p>Participants of the discussions include Economy Minister Sergio Massa, the head of customs Guillermo Michel and incoming central bank vice-president Lisandro Cleri and the president of Ciara-Cec, Gustavo Idigoras. Massa had said in an Aug. 3 <a href="https://www.bloomberg.com/news/articles/2022-08-03/argentina-pledges-to-end-budget-financing-via-money-printing">speech</a> that he would work to get exporters to bring in $5 billion in the next 60 days. </p><p>The details of the Nodo instrument will be announced today, according to one of the people. At a Thursday board of directors meeting, the central bank discussed changes that would avoid a mismatch between the term of the notes and the settlement currency. By allowing the note to be paid in pesos, international banks’ capital requirements would not be affected. </p><p>An international bank is already receiving inquiries from large crop exporters on the mechanisms to enter the amounts into the country next week, one of the people said. </p><p><em>— With assistance by Jonathan Gilbert, Michael Hirtzer, and James Attwood</em></p><p>https://www.bloomberg.com/news/articles/2022-07-15/inflation-at-64-has-argentine-soy-farmers-hoarding-all-they-can?sref=wOrDP8KX</p><p>More hoarding signals slower shipments of soy oil and soy meal at a time when food supply chains are already heavily disrupted by the lingering impact of the pandemic and the war in Ukraine. It also curtails hard currency flows to Argentine coffers, exacerbating debt <a href="https://www.bloomberg.com/news/articles/2022-07-11/argentine-debt-plumbs-new-depths-as-political-tensions-mount">woes</a>.</p><p>Summer of chaos. Everything you need to know, every weekday.The Readout with Allegra Stratton on the big issues shaking the UK.Sign up to this newsletter</p><p>Prices for everything are soaring -- from <a href="https://www.bloomberg.com/news/terminal/RDLI5TT0G1KW">diesel</a> and tires for tractors, to wages for farmhands and <a href="https://www.bloomberg.com/news/terminal/RE9KOOT0AFB6">rates</a> charged by truckers. But a depreciation of the official exchange rate at which crop revenues are converted from dollars to pesos hasn’t been <a href="https://www.bloomberg.com/news/terminal/REPWFCDWX2PW">keeping pace</a>. So rather than selling soy to exporters now, it’s better to wait for a devaluation or to avoid pesos altogether by bartering beans for inputs.</p><p>“In Argentina they tend to hold onto grain as long as possible, treating it like money in the bank,” said Arlan Suderman, chief commodities economist at StoneX. “It’s to the point where they’d barter to buy a new pickup truck with grain rather than pesos.”</p><p>Bartering soybeans amid high inflation and currency swings isn’t for the faint-hearted. </p><p>Ariel Striglio, a farmer in Santa Fe province, took advantage of high international prices, trading enough soy to exchange for inputs and pay off debt while storing away about half of his harvest. But he recently saw two deals collapse, such is the pace of price moves. </p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!ECfM!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!ECfM!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png 424w, https://substackcdn.com/image/fetch/$s_!ECfM!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png 848w, https://substackcdn.com/image/fetch/$s_!ECfM!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png 1272w, https://substackcdn.com/image/fetch/$s_!ECfM!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png 1456w" sizes="100vw"><img src="https://bucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com/public/images/85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png" width="827" height="465" data-attrs="{"src":"https://bucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com/public/images/85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png","srcNoWatermark":null,"fullscreen":null,"imageSize":null,"height":465,"width":827,"resizeWidth":null,"bytes":null,"alt":"Argentine farmers lose out when the peso trails price rises","title":null,"type":null,"href":null,"belowTheFold":true,"topImage":false,"internalRedirect":null,"isProcessing":false,"align":null,"offset":false}" class="sizing-normal" alt="Argentine farmers lose out when the peso trails price rises" title="Argentine farmers lose out when the peso trails price rises" srcset="https://substackcdn.com/image/fetch/$s_!ECfM!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png 424w, https://substackcdn.com/image/fetch/$s_!ECfM!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png 848w, https://substackcdn.com/image/fetch/$s_!ECfM!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png 1272w, https://substackcdn.com/image/fetch/$s_!ECfM!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F85988124-fc0e-469a-9d97-31f94387cbe2_827x465.png 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><div class="pencraft pc-reset icon-container restack-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-refresh-cw"><path d="M3 12a9 9 0 0 1 9-9 9.75 9.75 0 0 1 6.74 2.74L21 8"></path><path d="M21 3v5h-5"></path><path d="M21 12a9 9 0 0 1-9 9 9.75 9.75 0 0 1-6.74-2.74L3 16"></path><path d="M8 16H3v5"></path></svg></div><div class="pencraft pc-reset icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></div></div></div></div></a><figcaption class="image-caption"> </figcaption></figure></div><p>After negotiating a loan for a new seeder, Striglio had to cancel after the bank hiked the rate by 15 percentage points. Suppliers also pulled the plug on a sale of fertilizers that he needs for corn and sunflower planting in just a few weeks after parallel exchange rates for the peso <a href="https://www.bloomberg.com/news/articles/2022-07-04/argentina-s-black-market-peso-sinks-on-economy-minister-shakeup">spiked</a>.</p><p>“It should be a simple equation of selling for more than your costs, but these days getting it right is like scoring a goal from the halfway line,” Striglio said.</p><p>Greater uncertainty means farmers go into wait-and-see mode and definitely don’t look to expand, said Eugenio Irazuegui, head of research at grains brokerage Enrique Zeni in Rosario.</p><p>RELATED STORIES<a href="https://www.bloomberg.com/news/articles/2022-07-14/argentina-s-central-bank-holds-rate-at-52-amid-faster-inflation">Argentina Holds Its Key Rate at 52% Amid Faster Inflation</a><a href="https://www.bloomberg.com/news/articles/2022-07-08/overnight-20-price-jump-supercharges-argentine-inflation-crisis">Overnight 20% Price Jump Supercharges Argentine Inflation Crisis</a><a href="https://www.bloomberg.com/news/terminal/RCPHIWT1UM0Y">Argentine Farmers Are Hoarding the Most Soy in a Decade: Chart</a></p><p>Francisco Perkins, a farmer in Buenos Aires province, has also kept back about half of his soy harvest as cost increases accelerate. “Whenever inflation is faster than currency depreciation, I lose competitiveness because I need more crop dollars to cover peso payments,” he said.</p><p>Perkins highlighted out-of-step increases charged by fieldwork contractors, who do the bulk of planting and harvesting in Argentina, and by suppliers who are struggling to replenish stocks because of import <a href="https://www.bloomberg.com/news/terminal/REIFUBDWRGG0">restrictions</a> designed to protect the central bank’s dollar reserves.</p><p>One recent ordeal for Perkins involved a quest to get hold of tractor tires -- then forking out about five times what he would have paid a year ago.</p><p>can I edit this without mishap? </p><p>“We used to have a spreadsheet of values to help come to an agreement with harvesters, but now we have to negotiate from zero,” he said. “Relative prices have been destroyed.”</p>No children (leaf entity)