Informe de Evolución del Mercado de Cambios y Balance Cambiario

This report analyzes the evolution of purchases and sales of foreign currency in the foreign exchange market, corresponding to November.

Main aspects

The world economy continues to go through a health and economic crisis in the face of the COVID-19 pandemic, with impacts on both the level of global and local activity, trade flows and capital movements. In recent months, the BCRA has implemented regulatory modifications that affect the foreign exchange market in order to promote a more efficient allocation of foreign currency. In this context, the clients of the entities bought USD 667 million in the foreign exchange market, which were sold by the latter for USD 385 million and by the BCRA for USD 282 million, respectively. In addition, the Monetary Authority made sales directly to the National Treasury for USD 568 million.

The real sector was a net seller of foreign currency for USD 57 million.

Within this group, the main sector in terms of historical net sales, “Oilseeds and Cereals”, recorded net revenues of USD 1,590 million, with a reduction of 31% compared to those recorded in the same period of 2019. It should be remembered that the sector in the last two months of 2019 registered extraordinary revenues, totaling about USD 2,300 million for November. This level of income was in line with estimates of net exports of goods for the month. The level of foreign indebtedness of the sector for export financing continues at minimum levels.

The “Real Sector excluding Oilseeds and Cereals”, on the other hand, was a net buyer in the foreign exchange market, with a total of USD 1,533 million, which meant a decrease in its net purchases of USD 175 million compared to the immediately previous month, basically due to the lower payments for imports of goods that, after five consecutive months, were below the level of customs flows. The purchases were mainly intended to make payments for goods and services, and to pay off financial debt.

“Individuals” bought USD 320 million net, basically for treasury tickets (USD 174 million, with a decrease of 12% compared to the previous month), and for expenses made with cards for consumption abroad (about USD 113 million, with a drop of 68% if compared to the same month of the previous year, within the framework of the continuity of the closure of borders due to the COVID-19 pandemic).

The “Institutional investors and others” sector, both residents and non-residents, made net purchases in the month for USD 108 million.

The foreign exchange current account, which includes the net result of foreign exchange operations recorded as net exports of goods and services, and primary and secondary income, registered a deficit of USD 340 million, explained by net purchases by “Primary income” and “Services”.

The financial account of the “Non-Financial Private Sector” had a deficit of USD 583 million, as a result of the net formation of foreign assets and the net cancellations of financial debt.

The operations of the foreign exchange financial account of the “Financial Sector” resulted in a deficit of USD 270 million, explained by the cancellations of financial debt and credit lines for USD 184 million and by the increase in the liquid foreign assets of the entities that make up the General Exchange Position (PGC) for USD 86 million.

The operations of the foreign exchange financial account of the “General Government and BCRA” resulted in a deficit of USD 222 million, mainly explained by the net outflows for financial debt.

During November, the BCRA’s international reserves decreased by USD 1,204 million, ending the month at a level of USD 38,652 million.