Argentina in talks with IMF to ease reserve targets amid drought
The Argentine government is in final talks with International Monetary Fund (IMF) officials to ease foreign exchange reserves targets for 2023 as part of the country’s $44bn programme, Reuters reported, citing its sources
The move comes as the South American commodity exporter faces its worst drought in sixty years, which has wiped out soybean, corn and wheat crops, jeopardising already weak foreign exchange reserves..
In the talks, the parties are discussing the impact of the drought on Argentina’s net reserve targets for 2023, sources say.
Moreover, a source from the Argentine government emphasises that negotiations are still ongoing and nothing has been decided yet. However, it is known that the parties are focused on agreeing on exact figures.
The agency recalls that Argentina – the world’s largest exporter of soybean oil and meal – is facing rising costs of energy and fertiliser imports due to the Ukrainian conflict, which adds pressure on much-needed US Dollar reserves.
Argentina’s net reserves today stand at around $4.4bn, according to calculations from Buenos Aires-based brokerage firm PPI Inversiones.
Under the latest review, Argentina had been set the target of net reserves to increase by $5.5bn at the end of March and $9.8bn at the end of the year.
