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Argentina Lifts Money-Market Funds’ Time-Deposit Cap to 50%, With Rule Set to Start Dec. 26

Regulators describe the change as a liquidity tool coordinated with the central bank, preserving the 70% joint cap and existing liquidity floors.

Amplían porcentaje de inversión en plazos fijos de los FCI y los money markets
Plazos fijos y billeteras virtuales: el Gobierno modificó los límites de inversión. (Archivo)

Overview

  • Through Resolution 1096, the CNV raised the per-instrument limit for traditional and pre-cancelable time deposits in money-market funds from 35% to 50% of assets.
  • The combined exposure to both types of time deposits remains capped at 70%, and mandatory minimum liquidity requirements are unchanged.
  • The adjustment follows an early-December rule that restricted funds’ use of exchange-traded repos (cauciones bursátiles) to 20% of assets.
  • Analysts expect allocations to rotate from cauciones toward pre-cancelable bank deposits, a shift that could lift caución rates and ease the Tamar benchmark.
  • Returns offered by digital wallets could edge lower if short-term rates decline, with the new limits reported to take effect on Dec. 26 as funds reposition.