Argentina asks oil companies to finance imports themselves

The Argentine government has asked oil companies to provide 90-day financing for their own imports due to a shortage of foreign exchange at the central bank, a person familiar with the matter said. This follows a decision by the Argentine government to require companies to obtain their own financing through international banks or parent companies to avoid resorting to the foreign exchange market for dollars. Argentina, one of the world’s top grain exporters, has been hit hard by the latest drought and the South American nation is dealing with plunging foreign exchange reserves that are threatening its ability to pay. It must also rebuild reserves to cover trade costs and future debt repayments, as well as meet economic goals under its $44 billion IMF lending program.