Argentina will slash export duties on all grains to zero until October 31, Presidential Spokesman Manuel Adorni announced on Monday morning. The move aims to bring in a stream of dollars at a moment when the financial authorities are hemorrhaging international reserves to stabilize the peso.<\/p>\n
A government source and exporters have confirmed to the Herald that the measure includes products in the soy complex. Adorni added on Monday afternoon that export duties on beef and poultry would also be eliminated.<\/p>\n
Last week, the Central Bank sold US$1.1 billion<\/a> over three days to defend the value of the peso after it reached the upper limit of the currency bands.\u00a0<\/p>\n President Javier Milei\u2019s government has blamed the currency run on market fears that the opposition could perform well in the upcoming national legislative elections. Milei has also faced several legislative defeats on public spending in recent weeks.\u00a0<\/p>\n However, economists have pointed out that the government\u2019s decisions have also worried markets, including their decision not to buy dollars when they were in a position to do so.<\/p>\n \u201cThe old politics seeks to generate uncertainty in order to sabotage the government\u2019s program. In doing so, they punish Argentinians: we will not allow it,\u201d Adorni wrote on X on Monday morning.<\/p>\n \u201cThat is why, with the goal of increasing the supply of dollars during this period, until October 31 there will be zero export duties on all grains.\u201d<\/p>\n That date is five days after Argentina\u2019s national mid-term elections, in which half of the lower house and a third of the upper house will be renewed.\u00a0<\/p>\n At the start of the year, the government announced a temporary cut in export duties. The rates were briefly restored in late June, but Milei announced a \u201cpermanent\u201d reduction<\/a> a month later.<\/p>\n Cutting export duties to zero means the government is temporarily foregoing a significant source of tax income in order to incentivize exports that will bring in dollars.<\/p>\n