Finance

Argentina: Finance

Currency and Exchange Rates:

Monetary Units:

100 centavos = 1 nuevo peso argentino (new Argentine peso).

Sterling, Dollar and Euro Equivalents (29 May 2009):

£1 sterling = 6.023 new pesos;
US $1 = 3.729 new pesos;
€1 = 5.257 new pesos;
100 new pesos = £16.60 = $26.82 = €19.02.

Average Exchange Rate (new pesos per US $):

2006 3.054
2007 3.096
2008 3.144

Note: From April 1996 to December 2001 the official exchange rate was fixed at US $1 = 99.95 centavos. In January 2002 the Government abandoned this exchange rate and devalued the peso: initially there was a fixed official exchange rate of US $1 = 1.40 new pesos for trade and financial transactions, while a free market rate was applicable to other transactions. In February, however, a unified `floating' exchange rate system, with the rate to be determined by market conditions, was introduced.

Central Government Budget (million new pesos)


Revenue	2007^*		2008^†		2009^†
Current revenue	143,276	.8	168,322	.1	182,213	.4
Tax revenue	99,898	.0	118,751	.8	128,012	.9
Direct	19,091	.0	21,942	.2	24,630	.7
Indirect	80,807	.0	96,809	.7	103,382	.1
Social security contributions	37,328	.4	40,237	.4	44,554	.7
Sale of public goods and services	777	.4	909	.3	939	.2
Property income	1,988	.7	3,380	.1	3,567	.9
Other non-tax revenue	2,769	.6	3,501	.2	3,732	.0
Current transfers	514	.7	1,542	.3	1,406	.7
Capital revenue	1,169	.8	1,140	.7	1,027	.3
Total	144,446	.6	169,462	.8	183,240	.7


Expenditure	2007^*		2008^†		2009^†
General administration	6,702	.6	7,811	.4	7,810	.7
Judicial	2,224	.3	2,559	.5	2,631	.1
Foreign relations	1,168	.2	1,689	.6	1,596	.2
Interior	1,333	.1	1,249	.0	1,395	.3
Defence and security	8,625	.2	9,899	.7	9,748	.4
Defence	4,125	.6	4,401	.7	4,362	.9
Internal security	3,460	.8	4,166	.3	4,122	.4
Social services	84,280	.2	98,720	.5	108,274	.6
Health	4,894	.8	6,194	.9	6,363	.2
Social security	57,198	.7	66,584	.8	73,920	.5
Education and culture	9,612	.0	11,294	.7	12,952	.8
Economy	22,918	.1	25,845	.8	27,598	.0
Energy, fuel and mining	9,392	.5	10,952	.6	11,877	.2
Transport	9,965	.6	10,638	.1	11,401	.8
Debt-servicing	16,792	.3	19,209	.1	22,599	.9
Total	139,318	.4	161,486	.5	176,031	.6

^* Estimates

^† Budget forecasts

Note: Budget figures refer to the consolidated accounts of the central Government only.

Source: Oficina Nacional de Presupuesto, Secretaría de Hacienda, Ministerio de Economía, Buenos Aires

International Reserves (US $ million at 31 December)


	2006	2007	2008
Gold (national valuation)	1,123	1,434	1,514
IMF special drawing rights	482	507	494
Foreign exchange	30,421	44,175	44,360
Total	32,026	46,116	46,368

Source: IMF, International Financial Statistics

Money Supply (million new pesos at 31 December)


	2006	2007	2008
Currency outside banks	53,812	67,067	74,099
Demand deposits at commercial banks	24,569	39,148	37,540
Total money	78,381	106,215	111,640

Source: IMF, International Financial Statistics

Cost of Living (Consumer Price Index for Buenos Aires metropolitan area; annual averages; base: April 2008 = 100)


	2006		2007		2008
Food and beverages	84	.3	93	.7	100	.1
Housing and basic services	83	.8	91	.7	101	.0
Clothing	95	.0	102	.1	103	.2
Transport and communications	85	.4	91	.3	101	.0
All items (incl. others)	85	.5	93	.1	101	.1

National Accounts (million new pesos at current prices, preliminary)

Expenditure on the Gross Domestic Product


	2006	2007	2008
Government final consumption expenditure	81,248	105,013	139,336
Private final consumption expenditure	386,305	475,876	598,839
Increase in stocks^*	–2,124	94	18,582
Gross fixed capital formation	152,838	196,622	240,621
Total domestic expenditure	618,267	777,605	997,378
Exports of goods and services	162,035	200,080	251,367
Less Imports of goods and services	125,863	165,230	210,557
Gross domestic product (GDP) in market prices	654,439	812,456	1,038,188
GDP at constant 1993 prices	330,565	359,170	384,201

^* Including statistical discrepancy

Gross Domestic Product by Economic Activity


	2006	2007	2008
Agriculture, forestry and hunting	48,759	68,253	91,160
Fishing	2,001	1,849	2,365
Mining and quarrying	36,235	35,557	35,699
Manufacturing	134,709	158,821	204,575
Electricity, gas and water supply	9,712	10,991	12,362
Construction	34,897	46,359	56,434
Wholesale and retail trade	69,127	86,318	113,228
Hotels and restaurants	16,344	19,969	25,069
Transport, storage and communications	53,565	64,106	80,565
Financial intermediation	28,048	36,366	48,525
Real estate, renting and business activities	65,962	81,907	104,434
Public administration and defence^*	33,629	43,698	58,387
Education, health and social work	46,943	61,344	81,320
Other community, social and personal service activities^†	24,862	30,630	38,352
Sub-total	604,793	746,168	952,476
Value-added tax	49,044	65,124	84,423
Import duties	5,139	7,015	8,988
Less Financial intermediation services indirectly measured	4,536	5,851	7,699
GDP in market prices	654,439	812,456	1,038,188

^* Including extra-territorial organizations and bodies

^† Including private households with employed persons

Balance of Payments (US $ million)


	2007	2008
Exports of goods f.o.b.	55,780	70,589
Imports of goods f.o.b.	–42,525	–54,547
Trade balance	13,255	16,042
Exports of services	10,341	12,019
Imports of services	–10,841	–12,945
Balance on goods and services	12,755	15,116
Other income received (net)	–5,927	–7,489
Balance on goods, services and income	6,828	7,627
Current transfers (net)	275	–38
Current balance	7,103	7,588
Capital account (net)	116	135
Net investment in banking sector	1,567	2,220
Net investment in public sector	2,423	–253
Net investment in private sector	1,230	–11,293
Net errors and omissions	659	1,612
Overall balance	13,098	9

Citation: Finance (Argentina), in Europa World online. London, Routledge. Retrieved 11 March 2010 from http://www.europaworld.com/pub/entry/ar.ss.39

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