The sharp decline in Argentine stocks is due to fears of a possible trade war from Trump. The increase in exporter liquidations has been beneficial not only for the BCRA's net purchases in the official currency market but also for the stability of financial dollars, as 20% of these liquidations are made through the CCL, which increases supply and reduces upward pressure in that segment.
The significant purchase of foreign currency by the BCRA has been facilitated by an increase in currency liquidations from agro-exporters. These liquidations have reached USD 151 million and an average of USD 158 million in the last seven days, a pace not seen since early August 2023, when an Export Increase Program (PIE) implemented by former minister Sergio Massa was in effect.
According to Portfolio Personal Inversiones, the increase in liquidations in the agro sector is mainly due to the remarkable rise in the price of soybeans in the local market, which has encouraged producers to sell their accumulated stocks to exporters. This has resulted in greater currency liquidation in the official currency market, allowing the Central Bank to increase its purchases and replenish reserves.
The rise in domestic soybean prices has also been a key factor in this situation. Gustavo Quintana, a currency trader, highlights the acceleration in agro liquidations during the week, attributing it not only to the rise in domestic soybean prices but also to the seasonal liquidation of the fine harvest, while the coarse harvest is expected to arrive by the end of March.
So far in February, liquidations have reached USD 1786 million, while for the year, they total USD 3534 million. Agro-exporters show a trend of increasing their dollar income in the official currency market.
