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Argentina imposes toughest travel ban in the Americas, sparking outcry

Argentina on Monday banned all commercial flight ticket sales until September, one of the toughest coronavirus travel bans in the world, prompting an industry outcry that the new measure will put too much strain on airlines and airports. While the country’s borders have been closed since March, the new decree goes further by banning until Sept. 1 the sale and purchase of commercial flights to, from or within Argentina. The decree, signed by the National Civil Aviation Administration, said it was “understood…

COVID-19 AND ARGENTINA: THE COST OF DOING BUSINESS

Argentina has adopted a stringent lockdown policy of shelter-in-place, allowing residents to leave their homes only for food, medication, or to work in an essential industry. This effort to “hammer” the contagion and mortality curves of the virus contrast with the more lax policies of its neighbour, Brazil. Which of these approaches proves most prescient is yet to be seen. But, for now, Argentina has elected to place the cost of its ordered lockdown on the private sector. Let us take a quick look. Presidential…

Argentina Pockets $35 Billion Windfall After Accounting sleight of hand

Argentina may be in deep financial trouble but its central bank is comfortably back in the black — thanks to a smoke and mirrors accounting manoeuvre. A little-noticed decision by policymakers late last year to change the way they value government bond holdings transformed the central bank’s balance sheet overnight, turning what had been a net worth of negative $2 billion into positive $33 billion. Officials have made little effort to explain the move — they just say it’s part of a wide-ranging…

Does Argentina Need the US Dollar?

The peso swoons after a presidential vote, showing the risk of an inflation tax The Argentine peso gained ground late last week after a three-day rout that followed President Mauricio Macri ’s crushing defeat in the Aug. 11 primary for a second term. But there’s no sugarcoating reality: The Argentine hunger for dollars has shot up alongside the risk of holding peso assets.  At least part of the small recovery may have come about because on Thursday the central bank put a limit on the amount…

Argentina’s political leadership not facing up to the urgent economic realities

Argentina went to the polls on Sunday to choose the candidates in the presidential election to be held on October 27. However, there were no competing candidates as all the main parties only presented one option. President Mauricio Macri, who intends to run for a second term, was expecting to finish neck-and-neck with the Peronist opposition leader Alberto Fernández. He was not even close. Fernandez won the primary by a large margin (47 per cent to 32 per cent), enough to secure the presidency in October (45…

Argentine farming has a revival and aims for new production records in 2020

comprar Campos Argentinos
The agricultural super harvest this year, the boost in meat exports and the opening of new markets for the regional economies has put the sector at the forefront of the exit from the current grueling recession. The agro-industrial sector will receive President Mauricio Macri tomorrow at the formal opening of the Palermo Livestock Exhibition with more than the good financial numbers on the table to discuss. It is the farming sector that once again has proved this year that it is the main engine of the Argentine…

Will Argentina revert to a non-country for local and foreign investors if Cristina Fernandez wins

Argentina’s populist former president Cristina Fernandez de Kirchner — who is nominally running for vice-president, but is the indisputable No. 1 on her ticket — is leading in most polls for the Aug. 11 primaries, and for the October presidential elections. If her ticket wins and ousts the current president, Mauricio Macri, Argentina will sink into an even deeper economic crisis. That’s my conclusion after getting internal statistics from international financial institutions. They confirm what some…

Economic Misery in Argentina as reforms are slow to take effect

Since taking office more than three years ago, President Mauricio Macri has broken with the budget-busting populism that has dominated Argentina for much of the past century causing crisis after crisis, embracing the grim arithmetic of economic orthodoxy. President Macri has turned away from left-wing populism. He vowed to shrink Argentina’s monumental deficits by diminishing the largess of the state. The trouble is that Argentines have yet to collect on the other element the president promised: the…

Argentina’s past energy imbalance is declining quickly

Argentina has been stepping up export sales of petroleum products to Brazil, Chile, and Uruguay as its production from the Vaca Muerta oil fields surges. Output has shot up 169% year on year to 31 million cu m/d in February, pushing up total production 7.9% to 135 million cu m/d, the latest numbers from the Energy Secretariat show. The secretariat has estimated that production could double to 260 million cu m/d in 2023, meaning that it must find new markets for additional production. As part of this, Argentina…

Which countries have the highest public debt levels?

Global debt has climbed at an eye-watering pace over the last decade. According to the International Monetary Fund, global debt climbed to 225% of global GDP in 2017. That’s 12 percentage points higher than the previous record level set in 2009, during the Global Financial Crisis, and many have pointed toward the global debt pile-up, particularly public debt, as the potential culprit for the next global financial crisis. Countries with most public debt Infogram The increase in global debt over the last…

It is expected that Argentina’s Ag futures will grow 35% this year

A good sign for the Argentine farm economy: during the past January, the Buenos Aires Futures Exchange (MATBA) operated 3.2 million metric tons of grains futures, growing 14% versus January 2017 and beating a new record for this month reaching 60 MMT. In the previous years (2015 to 2017) MATBA operated between 1.5 and 1.9 MMT of futures contracts in January. The first large step occurred in 2018 when volume jumped to 2.8 MMT, but now the trend seems to secure and the wheat is the “star” crop. As its output…

What now for South America and Venezuela as the pink tide recedes?

While nearly two decades of ideologically driven economic mismanagement has turned Venezuela from a relatively wealthy oil state into a Zimbabwe-like basket case, Chile has mainly stayed the course, politically and economically, just to the right or left of the sensible centre. Wild swings avoided Since the restoration of democracy in the late-1980s, this long, thin ribbon of a country has largely avoided the wild boom-and-bust pendulum swings that have characterised much of the continent’s stop-start…

Argentine winter crops bring fresh dollars to a weak economy

In January, oilseed industry and grain exporters entered USD 1,756 million into the Argentine economy, versus USD 1,040 million in December 2018. Some analysts celebrate this fact saying that thanks to better harvests of wheat and barley, export companies are enhancing the income of dollars into the Argentine economy. According to the press release of the Oilseed Industry Chamber (CIARA), this increase of export dollars is related to the purchase of these two winter crops by the exporters. In fact, 8,4 MMT…

Excellent Rains in Argentina’s soybean belt give expectations of a bumper 2019 harvest

Unlike last year the rains has been good in key parts of the Pampas including northern Buenos Aires, and southern Cordoba, Santa Fe, and Entre Rios provinces Rainstorms are sweeping Argentina’s soy belt, building soil moisture needed to guarantee good yields when crops blossom in February and providing some cushion for China to buy should its trade war with the United States continue to limit U.S. supplies. Bolstered by strong showers in key parts of the Pampas farm region, which meteorologists expect to…

Farms in Argentina continue to underpin the countries economic recovery with an expected USD 3 billion of sales before March 2019

This is the calculation for the remainder of the soybean and corn harvest, as well as the exports of the new seasons wheat. Despite some flooding, it shows the hope of a super harvest is now likely to be realised. The wheat harvest already over two million tonnes. Despite flooding from over 380 mm of rain in some regions from a storm last weekend, which will damage yields in some areas. It is a shared bet by the government and analysts estimate that the recovery of the overall economy will now be in the first…
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