The Argentine government announced the resumption of the preferential exchange rate of the peso on November 25th US-Dollar for sale from Soybeans announced in the country, which will be effective from November 28 to December 31 this year, reports S&P Global Platts.
With this decision, the government wants to boost oil exports at the end of the year and strengthen the reserves of the central bank. This could also help increase Chinese importers' demand for Argentine oil.
As is made clear, the “soybean”Dollar” is set at 230 pesos for 1 US dollar, while the official rate is 166 pesos per dollar.
With the introduction of the preferential exchange rate, it is expected that Argentine farmers who Soybeans preferring to store them in warehouses rather than sell them, as a hedge against inflation, will increase oil sales, as was the case in September this year.
In addition, market operators expect China to receive 1-1,5 million during the “Soy Dollar” campaign in Argentina Tonnen Argentinian oil culture can buy.