Friday, February 3

Harder clamp: there will be no more dollars to import cars

In practice, in the last three months of 2021, the operations had been carried out in this way, since the fall in reserves forced the national authorities to further restrict foreign currency to import. That is why the new modality did not come as a surprise in the sector. In fact, the meeting was held in a climate of cordiality and recognition of the country’s difficult situation in terms of reserves. During the first part of the year, importers received, from the Central Bank, a certain amount of dollars to import vehicles. Now, they will have to resort to external financing.

From the Government He explained to them that this situation will govern throughout 2022, so only later will they be able to recover the dollars. Meanwhile, they must take credits abroad. “It is a measure that is understood in a context of lack of foreign exchange. We have to finance ourselves abroad to obtain the dollars to import,” he explained to Ambit the president of CIDOA, Hugo Belcastro.

With the sale of the cars, they will receive dollars or pesos, from the clients. If they receive foreign currency – beyond the fact that the operation is recorded in pesos – they can use it to pay off the credit. In case of charging in national currency, they must access the different exchange markets to get dollars and pay off the debt.

What remains clear and that is the message that the National government is that, from now on, dollars will not be released from the Central to import cars. Also that the supply of vehicles will be limited to the possibilities that each importer has of obtaining credit and by the amount that they grant. That is, the number of units will be limited to financing.

Distortions are recorded in the market due to the lack of vehicles. This means that there are overprices or that payment in dollar bills is required, beyond the fact that the 0km are sold in pesos at the value of the official dollar. The law of supply and demand is what determines the value of a car today.

On the other hand, this mechanism will incur a higher import cost that the consumer will end up paying.

This measure affects distributors of imported brands without factories in Argentina. Meanwhile, the terminals located in the country will continue to import under the current system that delivers foreign currency to the extent that they export.

The authorities of the association that brings together local factories (ADEFA) met today with President Alberto Fernández to take stock of 2021 for the sector, an industry considered key to the economy. In this sense, it was highlighted that an increase of around 30% in the production and exports of vehicles is expected by 2022.