BUENOS AIRES: The Central Bank’s sudden restrictions on dollar transactions destined for imports, its head Alejandro Vanoli will meet with leaders of the Argentine Chamber of Importers (CIRA) in search of solutions.
The last three days of the week saw unannounced blocks from the monetary authority to private banks which wanted to purchase dollars in order to finance the imports that CIRA members demanded, leading importers to worry about the consequences, which could include strained relationships with suppliers, additional interest payments and lack of access to some goods.
CIRA’s president Diego Pérez Santiesteban will be joined by his technical team and the organization’s directors in the meeting, as will Vanoli, as both parts will focus on the specific demands of the sector and how to comply with them while avoiding instability.
Although some businesspeople have said in private that they are worried about new permanent restrictions to purchases abroad, Vanoli stated that regulations are not bound to change, and that what happened in the last week was part of a temporary need to “administrate” currency during a period of short-term scarcity. The government hopes that the second quarter will bring fresh dollars from the soybean’s harvest season, opening the door to a period of more fluid imports.
The meeting will take place at noon at the Central Bank’s headquarters on Reconquista street in downtown Buenos Aires.
The conclave was originally postponed after Vanoli asked Santisteban for more time to analyze the situation.
“I told Vanoli about the risks of this situation continuing in the long-term future, it could affect the importers’credit,” CIRA’s head Diego Pérez Santisteban said on Friday.
Last month, the World Trade Organization (WTO) ruled against Argentina in a case that the United Stated, the European Union and Japan brought against national licensing rules, which require prior authorization for purchases abroad. The ruling said Argentina was using them to unlawfully restrict imports.
As this could put a dent on the Domestic Trade Secretariat’s powers to delay or filter imports, it has led to speculation that Argentina could now turn to restrictions on private banks’ purchase of dollars to contain leaks on the Central Bank’s dollar reserves.
