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Argentina Pushes New ‘Soy Dollar’ Rollout to Wednesday

BUENOS AIRES, April 3 (Reuters) – Argentina will announce the details of a new effort to boost soy exports on Wednesday, two days later than first planned, government and industry sources told Reuters on Monday.

The government had planned to launch its latest “soy dollar” plan, which uses a preferential exchange rate to provide an incentive for exports, on Monday.

The plan, the third of its kind since mid-2022, comes as the worst drought in decades continues to aggravate Argentina’s already strained finances.

A government source told Reuters Monday that officials pushed the announcement to Wednesday as talks continue with the agro-export sector. According to the source, the soy plan will last until the end of May.

A source from the agro-export sector confirmed the information to Reuters.

The “soy dollar” plan aims to increase sales and exports of soybeans and their derivatives by offering producers an exchange rate higher than the official rate of 210 pesos per dollar.

A source close to the economy ministry with knowledge of the matter said the plan would go into effect next Monday.

Argentina’s government, which faces a challenging horizon ahead of general elections in October, is hoping the policy will spur $15 billion dollars in soy exports between the second and third quarter.

The South American country is the world’s top exporter of soy meal and soy oil, and the “soy dollar” in the past has spiked the influx of foreign currency to the cash-strapped central bank.

The worst drought in more than six decades has taken a steep toll on Argentine farmers.

Source : Agriculture