Argentina’s soybean dollar program and impact on global supply

By Guil Signorini, Department of Horticulture and Crop Science The Ohio State University

The macroeconomic policy in Argentina and their government’s strategy to improve the central bank’s financial reserves have crossed paths with agribusinesses and the production of commodities. The country has been grappling with high inflation rates and a weakening exchange rate of the Peso against the United States Dollar for several years, but the situation has worsened more recently.

Most countries around the globe were affected by inflation following the pandemic years as a collateral effect of social stimulus plans and disrupted supply chains. Currencies of developing countries devalued consistently against the Dollar and investors left to seek stable markets. Yet, Argentina’s economy has taken a darker turn than most. Its currency continues to depreciate at unprecedented rates. On Jan. 10, 2023, one U.S. Dollar was equal to 180 Pesos, compared to 60 Pesos per Dollar in January 2020 — a threefold depreciation in three years.… Continue reading