Main aspects
In November, companies in the real sector were net sellers of foreign currency for about US$ 900 million.
Within that group, the main sector with net supply in historical terms, “Oilseeds and cereals”, had net sales of about US$ 1,100 million, with a year-on-year drop of 34%, mainly caused by the drought that affected its main crops in this year’s harvest.
Companies in the “Real Non-Agricultural Sector” made net purchases of about US$ 200 million. The difference with net purchases of US$ 2,250 million in November 2017 is partly explained by the slowdown in imports in recent months.
“Individuals”, who basically demand foreign currency for hoarding and trips abroad, bought US$ 450 million net, which meant the fourth consecutive month with a fall compared to the previous month and a new low since the relaxation of exchange regulations in December 2015. This decrease in net purchases by individuals was observed in the net demand for treasury tickets, with the particularity that the number of individuals who sold increased again and the amount they bought decreased compared to what was seen in October.
“Institutional investors and others”, both residents and non-residents, had net purchases of US$ 300 million, which represented 17% of the average monthly net outflow they had since the beginning of the exchange rate instability last April.
The entities increased their General Exchange Position (PGC) by US$ 780 million, basically due to the increase in the holdings of banknotes, funded with withdrawal of deposits in the BCRA. In the foreign exchange market, they bought US$ 130 million from their customers and used their own funds for US$ 490 million for loan cancellations, primary subscriptions of securities and interest payments.
Since the exchange rate never left the “non-intervention zone,” the BCRA did not intervene in the foreign exchange market.
The General Government made principal and interest cancellations of debt securities for some US$ 2,570 million and payments to international organizations for US$ 330 million, partly funded with new placements of LETES for US$ 945 million. As a result of the movements described, international reserves decreased by US$ 2,762 million throughout November, ending the month with a stock of US$ 51,193 million.
