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2mo ago

Argentina Central Bank Raises FCI Reserve Requirement to 30%

The board’s approval of the August hike aims to restrict excess liquidity, leading banks to pass reduced yields to virtual wallet users.

La medida que tomó el Banco Central contra las billeteras virtuales.
Por una medida del Banco Central bajará el rendimiento que ofrecen las billeteras virtuales.
Caerá el rendimiento de los fondos money market
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Overview

  • The BCRA board confirmed that reserve requirements on FCI sight deposits will increase from 20% to 30% starting in August.
  • The change aligns FCI deposit ratios with those for other bank depositors, correcting a long-standing asymmetry.
  • By tying up a larger share of deposits at zero interest, the measure is designed to drain excess pesos from the financial system.
  • Banks will respond by lowering the interest rates they pay virtual wallet providers, which will translate into reduced returns for end customers.
  • The move builds on a June plan under President Santiago Bausili to progressively tighten reserves on volatile funds and curb unsustainable credit growth.