Buenos Aires: Traders and analysts report that on the first day of the 'Soybean Oil Dollar' program, which gives farmers and shippers a favorable exchange rate, the newest government incentive to increase Argentina's processed Soybean Oil exports, observed relatively few participants.

In order to improve local and foreign exports, the central bank's reserves, and farmer sales, Argentina reintroduced a more beneficial foreign exchange rate for Soybean Oil exporters. The program, effective from April 8, 2023, to May 31, 2023, enables local exporters to complete their sales from the Soybean Oil complex at a rate of Peso 300 to $1, which is over 40% higher than the strictly regulated official rate of around 213 Pesos per greenback.

The goal of reintroducing this scheme for the third time as per the Argentine government, which is fighting to control triple-digit inflation ahead of this year's elections, aims to promote the export of the vital product, including Soybean Oil, in order to add a greater amount of cash to the country's depleting foreign reserves, which are particularly needed to pay off debt.

Previously, a Peso 200 for every $1 currency settlement level was used during the first soybean oil exchange regime, which ran from September 5 to September 30, 2022. This resulted in sales from the Soybean Oil complex of around 14.5 million MT, generating foreign currency for more than $7500 million during the course of its validity period. While on November 28, 2022, the nation once more started offering Soybean Oils and their derivatives at a favorable exchange rate of 230 Argentine Pesos for every US dollar. To promote Soybean Oil sales to domestic crushers and the export market, the second "Soy dollar," the newest application of this policy, was created after its successful run in September.

According to industry experts, the new policy will lead to an increase of more than 10 billion dollars in soybean Oil and its derivatives exports between the second and third quarter of 2023.