Argentina Fixed Deposit Rates in a Post-Economic Program Era
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BUENOS AIRES — May 6, 2024 — The Argentinian economy is currently adjusting to its new policies. The Central Bank’s decision on interest rates is a pivotal factor along with the increased autonomy granted to commercial banks. Find all the crucial details on Argentina’s fixed deposit rates right here. This article will help explain what you need to know.
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Argentina’s financial landscape is shifting as fixed deposit rates respond to the government’s new economic program. However,persistent inflation continues to fuel uncertainty about managing surplus pesos.
Central Bank’s policy Shift
On Jan. 30,the Central Bank of the Argentine Republic (BCRA) lowered the monetary policy reference rate by three points,reaching its lower nominal level in more than seven years.
This decision is pivotal in shaping the yields of fixed-term deposits.
Deregulation and Competition
Sence March 2024, commercial banks have been granted the autonomy to set their own interest rates for fixed-term deposits, free from any mandated minimums. Despite this deregulation,the BCRA’s monetary policy rate remains a key benchmark. This shift has intensified competition among banks vying for savers’ funds, as they are not being obliged to pay a minimum rate.
Did You Know?
The BCRA’s “zero emission” phase, initiated with Fiscal liquidity Letters (Lefis), indirectly boosted financial institutions’ yields by removing a tax discount on subscriptions.
Current Fixed Term Rates: A Bank-by-Bank overview
The central Bank’s rate comparator provides a systematic overview of annual nominal rates (NA) offered by various financial institutions for 30-day fixed-term deposits.
Among Argentina’s top ten banks by deposit volume, Banco Nación leads with a 35% annual nominal rate (NA). Banco Galicia Más and Banco Provincia de Buenos Aires follow closely,offering 34% NA,according to the Central bank’s data.
Outside the top ten, Banco VOII and Banco Bica stand out, offering an annual nominal rate (TNA) of 38% for online fixed-term deposits.
