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 April.

Main aspects

During April, international reserves increased by USD 7 million, ending the month with a stock of USD 43,568 million.

In the context of the COVID-19 pandemic, with impacts on both the level of global and local activity, trade flows and capital movements, and in parallel with the progress in the negotiations for the restructuring of the public external debt, customers of financial institutions bought USD 582 million in the foreign exchange market in April. to which are added USD 8 million acquired by the entities themselves, an amount covered by net sales of the BCRA for USD 590 million.

Companies in the real sector were net buyers of foreign currency for USD 95 million.

Within this group, the main sector in terms of historical net sales, “Oilseeds and cereals”, had net sales of USD 1,221 million, with a year-on-year decrease of 42%, in line with the fall in the Affidavits of Foreign Sales (which define the time of payment of export duties). It is important to remember that, during last November and December, the sector sold USD 4,600 million net (a year-on-year increase of 84%, basically due to the higher income from advances and pre-financing from abroad, which have been canceled during 2020), and that the records of foreign sales for all of 2019 were above the year’s exports by about USD 8,500 million.

Companies in the “Real Sector excluding Oilseeds and Cereals” made net purchases of USD 1,316 million, mainly to make payments for imports of goods and services.

“Individuals”, who basically buy foreign currency for hoarding, travel and other consumption abroad, bought USD 248 million net (USD 194 million for banknotes and about USD 50 million for travel and other card expenses that fell 87% year-on-year, given the context of border closures).

“Institutional and other investors,” both residents and nonresidents, made net purchases in the month for USD 163 million.

The current exchange account, which includes the net result of foreign exchange operations recorded as net exports of goods and services, and primary and secondary income in line with the definitions of the Balance of Payments, registered a deficit of USD 155 million.

The financial account of the “Non-Financial Private Sector” had a deficit of USD 348 million in April, as a result of net cancellations of financial debt and the formation of foreign assets, partially offset by income linked to direct investments.

The operations of the foreign exchange financial account of the “Financial Sector” resulted in a surplus of USD 573 million, explained by the decrease in the liquid foreign assets of the entities that make up the General Exchange Position (PGC), partly offset by cancellations of financial loans and credit lines.

The operations of the foreign exchange financial account of the General Government and BCRA registered a net inflow of funds of USD 64 million, which was basically explained by the net income from loans from international organizations.