Argentina reopens agricultural export registrations after currency devaluation

The government of Argentina has reopened agricultural export registrations after enforcing a ban(opens in a new tab) Dec. 12, the bioeconomy secretariat, led by Fernando Vilella, said Dec. 14.

"By means of this document, this Undersecretariat of Agri-Food Markets and International Negotiations informs the export sector of the opening of the registry of Affidavits of Foreign Sales (DJVE) of agricultural products included in the regime created by Law No. 21,453, starting at 10:30 am on Dec. 14," the order from the bioeconomy secretariat said.

The decision was announced shortly after a meeting between the bioeconomy secretariat and Liaison Table, an agricultural association, to discuss recent measures by Minister of Economy Luis Caputo.

Argentina on Dec. 13 devalued(opens in a new tab) the local currency to Peso 800/$1 and announced a "blended" foreign exchange rate for agricultural exports. This measure is seen as part of President Javier Milei's government to reduce fiscal deficit and tame inflation.

The country's official gazette indicated a blended exchange rate for agricultural exports as the liquidation of these sales could now be 80% via the official exchange and the remaining 20% via an unofficial local exchange. This puts the overall foreign exchange rate for exporters roughly around Peso 850/$1.

On Dec. 12, Argentina's government had closed its registry to record exports of grains, oilseed and subproducts, such as soybean oil and meal. Market participants have said this was done to increase tax revenues, which will be much higher after any further currency devaluations.

Some market participants have expected a cut in export taxes in the long term and a new devalued value of the peso to further increase revenues.

Argentina applies a number of export requirements, such as exporter registers and use of sworn declarations of foreign sales (DJVEs) to register exports of certain agricultural products. The use of DJVEs ensures a more steady incoming flow of foreign currency and provides information in advance on the projected volume of exports.

Argentina's 2023-24 corn output is estimated at 50 million mt, while soybean harvest is seen at 50.50 million mt, according to the Buenos Aires Grain Exchange.