To maintain consistency, the BCRA also decided to apply the same reserve ratio, of 15%, to passive stock securities taken by financial entities that have a residual term of up to 29 days. Representatives of the monetary authority assured that this measure seeks to “continue moving in the direction of eliminating distortions between instruments of a similar nature.” This measure was made official this Monday in the Official Gazette. But what does it imply?
The increase in the minimum amount of money that must be frozen It especially affects digital wallets due to the system they use to pay fees to their clients.
This measure goes hand in hand with the drop in inflation, the consequent drop in the monetary policy rate and, therefore, the performance of fixed terms at a current 40% annual nominal rate (TNA).
So, one bank placement now pays around 3.29% monthly, a figure that remains below April’s inflation, which was, according to economists, around 8.4%.
And, furthermore, the current fixed-term income is located at a level very similar to the increase in the price of the free dollarbecause on the first business day of May it advanced more than 2% in the MEP.
Reserve reserve ratios go down: what the Central Bank is looking for
By reducing the remuneration returns made by virtual wallets and FCI, they discourage natural persons from generating a return on these instruments. At the same time, other instruments are beginning to be a better option, such as CER bonds and fixed-rate treasury bills, extending duration, that is, extending the term for placing the pesos.
But it not only affects virtual wallets and Common Funds (FCI), but also guarantees, which are an instrument widely used short term. The question is whether so many pesos with lower yields will migrate to the capital market as the Government seeks or will they go to the dollar.
Virtual wallets and banks: how much they pay to leave the pesos immobilized
- Personal Pay: 62% up to 69%
- Ualá: 59.8%
- Claro Pay: 59.7%
- Orange X: 68%
- Payment Market: 53%
Fixed term: which ones pay the most
It should be noted that behind the apps who pay to keep the money there, there is a Money Market Investment Fund or money market, which is an instrument that invests daily and shows interest every day what gender. They are technically called immediate liquidity fundsmeaning investors can withdraw their money at any time without penalty.
- BBVA Bank: 57%
- Macro Bank: 51%
- Banco Galicia: 51%
- ICBC Bank: 50%
- Banco Nación: 50%
- City Bank: 50%
- Santander Bank: 48%
- Provincial Bank: 40%
- Credicoop Bank: 40%
- HSBC Bank: 39%
