US EditionArgentina: Interest Rates Soar in Response to New BCRA Rules
5 Articles
5 Articles
Argentina: Interest rates soar in response to new BCRA rules
Argentina's financial system is experiencing significant tension as a new reserve requirement scheme from the Central Bank (BCRA) forces financial institutions to drastically raise interest rates on fixed-term deposits. The average rate for a 30-day fixed-term deposit has jumped to 51.3%, a substantial increase from just a few weeks prior.
Since the Central Bank of the Argentine Republic (BCRA) deregulated the minimum amounts of interest rates in 2024, the return in pesos granted by the fixed term was also updated. In this line and with the new rise of the dollar, the financial institutions demanded a higher rate from the government and the monetary entity. Thus, the customers could see this increase in profits for their deposits with a return that already exceeds 50% per year, wh…
Amid the exchange rate volatility and monetary grip of BCRA, fixed-term retail rates climb up to 54% TNA to 30 days. In parallel, credit increases.
The new lace scheme forces financial institutions to review upwards, again, returns, while increasing financing. The financial stress and the decision of the Central Bank to raise again bank laces pushed many financial institutions to sustain the high rates they offer to savers and, as expected, will further impact on the increase of credit for businesses and individuals. According to the last official data published on Friday 22, the average pa…
The new fit scheme obliges financial institutions to review up again the returns, while increasing the financing
Coverage Details
Bias Distribution
- 100% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
