“Soy Dollar”: New Program for Strengthening the Argentine Central Bank Reserves

Through Decree No. 576/2022, the Executive Branch created an extraordinary and transitory Export Increase Program for strengthening the reserves of the Argentine Central Bank (BCRA).

The program is aimed at those who, in the last 18 months immediately prior to the creation of the program, have exported goods in tariff positions included by regulations.

The countervalue of the exported goods must be brought to the country in foreign currency and/or must be negotiated in the foreign exchange market. As an incentive for settlement, the program will allow exporters to obtain an exchange rate of ARS 200  per USD. The deadline to settle the foreign currency obtained from exports made through the program is September 30, 2022. This deadline includes cases of pre-financing and/or post-financing of exports from abroad, or settlement advances.

The program will be voluntary for those exporting goods covered by it, and will be of effective application for those who adhere and have registrations of Sworn Statements of Sales Abroad (DJVE), if applicable, for the goods included in the tariff positions accepted in the program, and provided that they correspond to sales and purchase agreements entered into as from the effective date of the program.

Additionally, by means of the BCRA Communiques “A” 7609 and “A" 7610, those participating in the program will not be allowed to (i) access the foreign exchange market to purchase foreign currency, carry out transactions with settlement securities in foreign currency; and (ii) access the foreign exchange market to withdraw foreign currency.

The prohibitions stated in the Communiques are applicable to those economic agents that have sold soybeans within the program, and are effective as from September 20, 2022 only for legal entities. The communiques state that the abovementioned prohibitions do not apply to human persons.
 

The program includes as well:

• As an incentive to increase exports: agricultural producers selling soybeans for export within the program for at least 85% of their 2021-2022 harvest production and at a price fixed before September 30, 2022 may access the benefits and programs established by the Secretariat of Agriculture, Livestock, and Fisheries for the 2022-2023 harvest.
   
• The terms for compliance with the DJVE may be extraordinarily and temporarily extended for commercial and logistical reasons duly accredited by the subjects adhering to the program, provided that the deadline for registration has been met, and may even establish alternative traceability and control procedures for the goods that do not require registration of the sworn statement.
   
• In markets authorized by the National Securities Commission, the delivery of the underlying asset corresponding to the fulfillment of Soybean Futures Contracts made from the effective date of the program and during the month of September 2022 will be invoiced considering the exceptional and transitory countervalue foreseen in it.
   
• The creation of an Incremental Export Fund with a proportion of the incremental proceeds from export duties on the goods included in the program will finance a monetary benefit to people in extreme vulnerable situations, and programs that stimulate the production and development of small and medium-size producers.