Argentina's current account surplus shrinks in June amid record exports and high dollar demand

Argentina's current account recorded a surplus of US$857 million in June, marking the third consecutive month of positive results. However, this figure represents a significant decrease from the US$1.877 billion surplus seen in May. The surplus was primarily driven by strong export revenues, which reached a new historic high, particularly from the agricultural sector, bringing in US$3.555 billion in June. Despite these strong inflows, import payments also rose to US$6.420 billion. The central bank noted increases in export revenues from the trade, energy, and mining sectors. However, outflows from primary income accounts, mainly due to profit and dividend remittances by companies to their parent entities, significantly increased to US$1.567 billion, up from US$802 million in May. This reflects a normalization of international transfers after years of currency restrictions. Adding to the outflow pressure, spending on travel and passages resulted in a negative balance of US$541 million, partly influenced by the start of the FIFA World Cup. The central bank clarified that a significant portion of these expenses are settled directly by consumers using foreign currency purchased on the exchange market. Meanwhile, retail demand for dollars remained high, with 1.5 million Argentines purchasing approximately US$2.443 billion in June, a net demand of US$2.015 billion.