Savers in Argentina have snapped up nearly US$130 million per day since controls limiting access to foreign currency were lifted in April, a Central Bank report has revealed.
According to the institution's foreign exchange balance sheet, individuals purchased US$10.13 billion between April and July.
During said period, there were only 79 business days (including public holidays), equating to around US$128 million per day.
In turn, US$1.18 billion were sold, leaving a negative balance of US$8.95 billion.
That amount more than doubles Argentina’s positive energy balance, which was nearly US$4 billion, boosted chiefly by production at the giant Vaca Muerta shale oil formation.
Meanwhile, savers sent US$2.62 billion abroad. External assets of the non-financial private sector totalled US$ 5.43 billion in July.
As for the level of foreign direct investment (FDI), the difference between income and expenditure produced a negative balance during the first seven months to the tune of US$1.37 billion, said the same Central Bank report.
This situation arises despite the introduction of President Javier Milei’s RIGI large investment incentive scheme, which has failed to take off. Just eight initiatives have been approved for a total amount of US$13.42 billion so far. Despite announcements, projects show little activity: for example, looking at imports, only three projects have registered movement. In total, imports related to investment total just US$26 million.
The Central Bank has also released a study on foreign investment for the first quarter of the year. The sectors which captured the greatest flows were “operation of mines and quarries” with US$758 million and “deposit-taking companies” with US$610 million. “FDI expenditure included especially ‘Information and communications’ (negative US$ 881 million) and ‘Manufacturing industry’ (negative US$ 340 million),” the document highlights.
“The main source of FDI flows in the first quarter of 2025 was Switzerland, with a net income of US$916 million, followed by Canada with US$337 million. Next came the United States, with US$303 million, Uruguay, with US$248 million and the Netherlands, with US$232 million. The main net outflows included Brazil (negative US$898 million) and Spain (negative US$642 million),” the Central Bank added.
– TIMES/NA
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