Finance

Argentina: Finance

Currency and Exchange Rates:

Monetary Units:

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

Sterling, Dollar and Euro Equivalents (31 May 2011):

£1 sterling = 6.717 new pesos;
US $1 = 4.070 new pesos;
€1 = 5.855 new pesos;
100 new pesos = £14.89 = $24.57 = €17.08.

Average Exchange Rate (new pesos per US $):

2008 3.144
2009 3.710
2010 3.896

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	2008		2009		2010
Current revenue	212,740	.9	267,203	.8	326,242	.2
Tax revenue	153,297	.4	173,143	.3	198,264	.8
Social security contributions	46,379	.1	64,735	.3	88,558	.8
Sale of public goods and services	1,024	.0	1,220	.4	6,186	.6
Property income	6,587	.9	12,506	.0	1,574	.9
Other non-tax revenue	3,925	.2	4,415	.8	29,672	.6
Current transfers	1,527	.2	11,182	.8	1,984	.5
Capital revenue	1,382	.2	2,289	.7	2,596	.4
Total	214,123	.1	269,493	.5	328,838	.6


Expenditure	2008		2009		2010
Current expenditure	179,091	.4	230,827	.8	294,948	.7
Consumption expenditure	29,046	.6	40,112	.3	54,576	.7
Remuneration	20,127	.3	27,658	.1	37,607	.9
Goods and services	8,917	.5	12,452	.0	16,960	.0
Other	1	.7	2	.2	8	.8
Property income	22,686	.8	28,356	.9	26,409	.2
Interest	22,684	.1	28,350	.4	26,401	.8
Other income	2	.7	6	.4	7	.4
Social security benefits	65,053	.7	85,429	.5	106,352	.5
Other current expenditure	8	.8	7	.8	15	.4
Current transfers	62,295	.6	76,921	.3	107,594	.9
Private sector	38,899	.1	43,949	.5	61,948	.3
Public sector	22,958	.4	32,469	.0	45,099	.0
External sector	438	.1	502	.9	547	.7
Capital expenditure	26,644	.0	33,582	.4	46,794	.9
Real direct investment	10,092	.7	11,298	.4	12,883	.1
Capital transfers	15,262	.5	20,977	.5	32,573	.0
Financial investment	1,288	.8	1,306	.5	1,338	.7
Total	205,735	.4	264,410	.3	341,743	.6

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)


	2008	2009	2010
Gold (national valuation)	1,514	1,932	2,497
IMF special drawing rights	494	3,170	3,114
Foreign exchange	44,360	42,922	46,619
Total	46,368	48,024	52,230

Source: IMF, International Financial Statistics

Money Supply (million new pesos at 31 December)


	2008	2009	2010
Currency outside banks	74,099	86,073	113,556
Demand deposits at commercial banks	37,604	44,996	59,215
Total money	111,703	131,069	172,771

Source: IMF, International Financial Statistics

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


	2008		2009		2010
Food and beverages	100	.1	102	.9	116	.9
Housing and basic services	101	.0	104	.8	109	.7
Clothing	103	.2	116	.2	131	.5
Transport and communications	101	.0	112	.1	118	.2
All items (incl. others)	101	.1	107	.5	118	.0

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

Expenditure on the Gross Domestic Product


	2008	2009	2010
Government final consumption expenditure	138,827	174,002	215,278
Private final consumption expenditure	595,012	667,375	826,794
Increase in stocks^*	18,931	3,176	35,468
Gross fixed capital formation	240,486	239,637	317,417
Total domestic expenditure	993,256	1,084,190	1,394,957
Exports of goods and services	252,772	244,569	313,150
Less Imports of goods and services	213,269	183,300	265,451
Gross domestic product (GDP) in market prices	1,032,758	1,145,458	1,442,655
GDP at constant 1993 prices	383,444	386,704	422,130

^* Including statistical discrepancy

Gross Domestic Product by Economic Activity


	2008	2009	2010
Agriculture, forestry and hunting	90,780	77,208	129,882
Fishing	2,399	2,155	2,484
Mining and quarrying	35,688	38,512	47,727
Manufacturing	201,175	224,188	271,665
Electricity, gas and water supply	12,321	13,459	15,716
Construction	56,554	60,158	74,212
Wholesale and retail trade	112,481	128,767	161,325
Hotels and restaurants	25,083	27,349	33,543
Transport, storage and communications	80,279	86,695	107,326
Financial intermediation	48,648	59,845	76,646
Real estate, renting and business activities	104,244	121,024	140,273
Public administration and defence^*	58,186	73,170	91,606
Education, health and social work	81,027	97,229	115,803
Other community, social and personal service activities^†	38,343	47,884	54,991
Sub-total	947,208	1,057,643	1,323,199
Value-added tax	84,265	90,843	120,152
Import duties	8,988	7,700	11,428
Less Financial intermediation services indirectly measured	7,702	10,728	12,124
GDP in market prices	1,032,758	1,145,458	1,442,655

^* Including extra-territorial organizations and bodies

^† Including private households with employed persons

Balance of Payments (US $ million)


	2008	2009	2010
Exports of goods f.o.b.	70,589	55,669	68,500
Imports of goods f.o.b.	–54,547	–37,141	–53,810
Trade balance	16,042	18,528	14,690
Exports of services	12,019	11,029	13,076
Imports of services	–12,945	–12,088	–13,820
Balance on goods and services	15,116	17,469	13,946
Other income received (net)	–7,489	–9,011	–10,016
Balance on goods, services and income	7,627	8,458	3,930
Current transfers (net)	–38	2,669	–358
Current balance	7,588	11,127	3,572
Capital account (net)	135	74	66
Net investment in banking sector	2,220	–986	–2,566
Net investment in public sector	–253	–727	2,279
Net investment in private sector	–11,293	–7,690	932
Net errors and omissions	1,612	–451	–126
Overall balance	9	1,346	4,157

Citation: Finance (Argentina), in Europa World online. London, Routledge. Retrieved 06 February 2012 from http://www.europaworldonline.com/pub/entry/ar.ss.39

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