After the elections, in Novemberpeople’s dollar purchases were moderated. Despite it So there were 1.1 million who bought tickets for a gross of $1,597 million while 692,000 generated gross sales of $509 million, according to the central bank. Net purchases amounted to $1,088 million.
In October, there were 1.6 million people who purchased tickets gross for $4,669 million and 784,000 people made gross sales for $473 million.
On the other hand, if net purchases of banknotes and currency transfers “without specific provision for the private sector” (foreign asset formation) are included, the decline was greater: they recorded a net outflow of $1,119 million, compared to $5,434 million in October.
The report clarifies that “part of the funds acquired and registered in the banknote account are deposited in local accounts and are subsequently used to cancel consumption with cards in foreign currency, so they do not fully represent the formation of foreign assets. Likewise, expenditure in foreign currency is partly intended for the repayment of liabilities abroad (for example, for the payment of trade and foreign financial debt or profits and dividends).”
Despite the trade surplus (exports less imports) of US$535 million, the current account of the exchange rate balance again recorded a deficit of US$1,163 million, mainly due to interest payments (US$1,131 million) and services of US$559 million.
“Of the net interest payments, $907 million was accounted for by the government and the BCRA, primarily for interest payments to the IMF, and $216 million by the private sector, the BCRA report said.
The $559 million services deficit was explained by net expenses for consumption of card-paid goods and services, travel and tickets (excluding digital services) of $412 million, other services of $268 million and freight and insurance of $143 million, partially offset by net revenues from professional and technical business services of $263 million.
The report clarified that the concept of consumption of goods and services paid for with cards, travel and tickets (excluding digital services) also includes payments/collections for goods sent/dispatched through postal services that are not related to travel.
For the month of November, payments for goods sent by mail were estimated to total US$95 million (value of CIF imports reported by INDEC for the month).
In this way, it is estimated that gross spending on the consumption of goods and services paid for with cards, travel and tickets (excluding digital services and goods sent through postal services) was $647 million in November. This is explained by gross expenses related to card spending for travel estimated at $472 million, $101 million related to passenger transportation services and $74 million related to overseas remittances. from tour operators.
70% of all spending on the consumption of goods and services paid for with cards is paid directly by customers with funds in foreign currency.
Meanwhile, the BCRA’s international reserves increased by $954 million in November “due to the increase in the foreign currency account of financial institutions in the BCRA against the backdrop of the growth of dollar deposits.” However, “this increase was cushioned by the payment of maturities with international organizations, more specifically by the payment of interest to the IMF in the amount of US$793.6 million,” the report continued.
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