With Vaca Muerta as protagonist, investment in the real economy was the best month in seven years

Gradually, and with most chips placed in Vaca Muerta, investment in the real economy is starting to take shape.

Although the investments expected by the government since it came to power are far from raining, foreign direct investment (FDI) in October recorded an income of 548 million dollars, the highest figure since 2011when, in one month, foreigners paid $ 569 million for productive activities.

The data is part of the Central Bank's Foreign Exchange Market Report and shows that the "Common Metals and Processing" ($ 300 million) and "Oil" ($ 106 million) sectors account for 75 percent of revenues. for the concept. The two sectors are directly and indirectly linked to the activity of the Vaca Muerta field, which is today the center of attention of foreigners who rely on investment in Argentina.

Anyway, this inflow of funds did not prevent the balance of all non-resident investments, including portfolio investment, from becoming negative in October, in the seventh consecutive month of net outflow.

More specifically, this trend began in April, when the first wave against the dollar took place, driven by the wave of Lebacs sales to foreign investors, the day before a tax on nonresidents. from the central bank.

Then volatility took over the foreign exchange market and, in a much more cautious external environment, more investors left local badets than those who entered the financial circuit.

Net outflows of non-resident portfolio investment were explained both by purchases of foreign currencies in peso badets ($ 775 million) and outflows of foreign currency deposits ($ 46 million) "The central explained with reference to the October figures.

These data show that beyond the fact that high rates attract many many local badets, risk aversion may be more important. And that is partly why country risk remains at high levels, beyond the dollar, in October, if it remained stable, and even down sharply.

On the other hand, the Central Report also indicates that in October, the net proceeds of borrowings and external debt securities amounted to US $ 478 million and cancellations of local loans to US $ 478 million. 32 million USD. "Debt revenues were mainly observed in the sectors" Automotive Industry "and" Oil, "said the monetary entity.

Thus, with all this, the public sector and BCRA capital and financial exchange account was closed in October with a surplus of US $ 6,610 million, mainly due to the disbursement of the second installment of the Stand By program. agreed with the IMF for $ 5.68 billion and Letes' net investment dollar inflow for about $ 1,100 million.

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