Finance

Argentina: Finance

Currency and Exchange Rates:

Monetary Units:

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

Sterling, Dollar and Euro Equivalents (31 December 2009):

£1 sterling = 6.122 new pesos;
US $1 = 3.780 new pesos;
€1 = 5.445 new pesos;
100 new pesos = £16.34 = $26.46 = €18.36.

Average Exchange Rate (new pesos per US $):

2007 3.096
2008 3.144
2009 3.710

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	149,462	.8	212,740	.9	241,644	.4
Tax revenue	102,352	.0	153,297	.4	173,768	.5
Social security contributions	40,305	.1	46,379	.1	58,257	.1
Sale of public goods and services	860	.8	1,024	.0	1,067	.6
Property income	2,333	.6	6,587	.9	2,584	.7
Other non-tax revenue	3,089	.2	3,925	.2	4,130	.5
Current transfers	522	.1	1,527	.2	1,565	.9
Capital revenue	1,148	.1	1,382	.2	1,304	.5
Total	1150,611	.0	214,123	.1	242,948	.9


Expenditure	2007		2008		2009^*
Current expenditure	128,884	.6	179,091	.4	200,938	.7
Consumption expenditure	21,851	.5	29,046	.6	34,034	.7
Remuneration	15,189	.2	20,127	.3	22,958	.6
Goods and services	6,661	.0	8,917	.5	11,072	.3
Other	1	.3	1	.7	3	.8
Property income	17,598	.7	22,686	.8	24,484	.9
Interest	17,596	.1	22,684	.1	24,479	.4
Other income	2	.6	2	.7	5	.4
Social security benefits	50,961	.4	65,053	.7	81,541	.9
Other current expenditure	20	.5	8	.8	8	.8
Current transfers	38,452	.5	62,295	.6	60,868	.4
Private sector	21,968	.3	38,899	.1	36,530	.7
Public sector	16,065	.3	22,958	.4	23,887	.5
External sector	418	.8	438	.1	450	.2
Capital expenditure	19,414	.2	26,644	.0	32,901	.0
Real direct investment	7,632	.9	10,092	.7	11,657	.4
Capital transfers	9,489	.0	15,262	.5	19,952	.0
Financial investment	2,292	.3	1,288	.8	1,291	.7
Total	148,298	.8	205,735	.4	233,839	.7

^* Preliminary figures

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	37,604
Total money	78,381	106,215	111,703

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	138,827
Private final consumption expenditure	386,305	475,876	595,012
Increase in stocks^*	–2,124	94	18,931
Gross fixed capital formation	152,838	196,622	240,486
Total domestic expenditure	618,267	777,605	993,256
Exports of goods and services	162,035	200,080	252,772
Less Imports of goods and services	125,863	165,230	213,269
Gross domestic product (GDP) in market prices	654,439	812,456	1,032,759
GDP at constant 1993 prices	330,565	359,170	383,444

^* Including statistical discrepancy

Gross Domestic Product by Economic Activity


	2006	2007	2008
Agriculture, forestry and hunting	48,759	68,253	90,780
Fishing	2,001	1,849	2,399
Mining and quarrying	36,235	35,557	35,688
Manufacturing	134,709	158,821	201,175
Electricity, gas and water supply	9,712	10,991	12,321
Construction	34,897	46,359	56,554
Wholesale and retail trade	69,127	86,318	112,481
Hotels and restaurants	16,344	19,969	25,083
Transport, storage and communications	53,565	64,106	80,279
Financial intermediation	28,048	36,366	48,648
Real estate, renting and business activities	65,962	81,907	104,244
Public administration and defence^*	33,629	43,698	58,186
Education, health and social work	46,943	61,344	81,027
Other community, social and personal service activities^†	24,862	30,630	38,343
Sub-total	604,793	746,168	947,208
Value-added tax	49,044	65,124	84,265
Import duties	5,139	7,015	8,988
Less Financial intermediation services indirectly measured	4,536	5,851	7,702
GDP in market prices	654,439	812,456	1,032,759

^* Including extra-territorial organizations and bodies

^† Including private households with employed persons

Balance of Payments (US $ million)


	2006	2007	2008
Exports of goods f.o.b.	46,546	55,980	70,021
Imports of goods f.o.b.	–32,588	–42,525	–54,557
Trade balance	13,958	13,456	15,464
Exports of services	8,023	10,340	12,080
Imports of services	–8,523	–10,807	–13,031
Balance on goods and services	13,458	12,990	14,513
Other income received (net)	–6,150	–5,941	–7,550
Balance on goods, services and income	7,308	7,048	6,963
Current transfers (net)	459	335	115
Current balance	7,768	7,384	7,078
Capital account (net)	97	116	181
Net investment in banking sector	–10,521	1,567	2,073
Net investment in public sector	3,042	2,401	–537
Net investment in private sector	1,573	1,572	–9,445
Net errors and omissions	1,571	58	659
Overall balance	3,530	13,098	9

Citation: Finance (Argentina), in Europa World online. London, Routledge. Retrieved 03 September 2010 from http://www.europaworld.com/pub/entry/ar.ss.39

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