The banks of the Argentine financial system showed on Tuesday an abrupt cancellation of deposits in pesos in response to the decision of the central bank (BCRA) to abruptly cut the rate within the framework of a new monetary policy, two sources in the sector told Reuters.
Savers now receive a maximum of 110% per year, compared to the previous 133% per Fixed deadlines to 30 days, while banks can mobilize funds at 100% for one day, compared to 133% annually for 28 days previously by eliminating the so-called ‘Liquidity Letters’ (“Leliq”) in exchange for the so-called ‘Repos’. ‘ or ‘Passes’ as a new market reference.
“It is a very strong change and the saver loses a lot against inflation. Unless there is a clear need, it is not advisable to immobilize money for 30 days at 110%, when inflation runs at 200% annually. To do this, it is preferable to buy goods or invest in other assets“, acknowledged a financial manager of the foreign banking.
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Market operators agreed that part of the liquidity in flux is redirected to stock market shares or sovereign bonds, with another smaller percentage that dollarizes portfolios through traditional electronic circuits (“CCL” or “MEP”) or through the classic informal or ‘blue’.
“It is logical that we have a lower level of renewal of Fixed deadlines (deposits), not only is the level of rates not of much interest, but before the end of the year holidays more than one (of the clients) chooses to use it (the money) on (personal) expenses.”commented an agent from the national private bank.
Because it was a trend of the day, official data on the mobility of the passengers was not yet available. Bank deposits.
The libertarian economist Javier Milei took office a week ago with the premise of attacking the fiscal deficit and eliminate the “Leliq” business because they were considered inflationary as a result of the constant issuance that forced the BCRA.
He BCRA comes from exerting a historic devaluation of 54.2% in the battered argentine pesowhich produced a strong liquefaction of assets compared to the dollar.
– Exchange rate: 1 dollar = 803.15 pesos (Reporting by Jorge Otaola; Edited by Walter Bianchi)
With information from Reuters
Source: Gestion
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