Zero Taxes, Big Stakes: Argentina’s Race to Rebuild Dollar Reserves

Argentina’s government cut export taxes on soybeans, corn, wheat and related products to zero from September 22 until October 31 or until exporters register $7 billion in shipments.

Faced with a plunging peso, shrinking reserves and rising inflation, officials moved swiftly to steer dollars back into local markets. Before the cut, exporters paid 26 percent on soybeans, 24.5 percent on soybean oil and meal, and 9.5 percent on corn and wheat.

By removing these levies, the government relies on agribusinesses to accelerate grain sales—the main source of foreign currency, accounting for about 70 percent of Argentina’s dollar inflows.

Markets reacted immediately. Chicago soybean futures fell nearly 1 percent on expectations of heavier Argentine exports.

As the world’s leading exporter of soybean oil and meal and the third-largest corn supplier, Argentina can reshape seasonal trade flows and compete fiercely with Brazil in key markets like China and Europe.

Behind the headline, the move reflects President Javier Milei’s push to fulfill campaign promises and stabilize the economy. He deferred broader tax cuts until now to balance revenue with urgent currency needs.

The strategy tests whether targeted incentives can rebuild reserves and restore investor confidence without derailing public finances.

More: Argentina news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error