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The global economic crash will affect Argentina's fruit exports

The current international crisis has taken its toll on two of the most important destination markets for the fruit from the region of Rio Negro and Neuquen Valley. Both Brazil and Russia have suffered a devaluation of their currencies that will affect the exchange rate of their imports.

Brazil, Mercosur's main partner for Argentina, has devalued its currency in recent days, reaching 4.9 reais per dollar, showing a variation of about 10% compared to the end of last Friday.

As for Russia, the ruble remained close to 69 units per dollar reflecting a 3% drop compared to Friday's close, but yesterday's forecast for the end of March placed it at 77 rubles, showing a 10% inter-day jump compared to the previous day. The expectations of the operators are that the Russian government will deepen the devaluation of its currency in order to lower the production costs of its hydrocarbons.

The devaluation recorded in these two countries means that the fruit exporters of the Valley will receive fewer dollars for their sales in the aforementioned destinations, as the final values of their product (pears and apples) in each of these markets will remain relatively stable in the local currency.

On the contrary, the euro, in this crisis, begins to gain strength. Yesterday it closed at about US $ 1.15, growing about 2%. Contrary to the previous cases, the strength of the Euro favors all those exports that are directed to Europe. In this regard, economists don't rule out that the United States will continue to drop the dollar so that its exports gain competitiveness.

But the reality is that, in developed markets, consumption is slow and most of the supply of Argentine pears - the species that the country commercializes the most within Europe - is geared towards the Mediterranean coasts of northern Italy, a place that is surrounded by the coronavirus.

 

Source: rionegro.com.ar 


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