BUENOS AIRES, ARGENTINA — With a historic drought driving the need for soybean imports, Argentina is allowing grain exporters to keep 25% of the foreign currency they generate in September to import soybeans, Reuters reported.
Domestic harvest has been cut in half by drought, making it necessary to import soybeans for processing into oil and meal. Argentina is the main global exporter of both.
Imports are up 700% this year, according to official data.
Agriculture Secretary Juan Jose Bahillo said by Monday, exporters will be allowed to freely dispose of 25% of the foreign currency for 30 days in order to guarantee the purchase of soybeans.
Now, grain exporters have to convert all dollars from exports into pesos within a strict time limit and at an officially agreed exchange rate. The government also regulates foreign currency to pay for imports.