The monetary authority pointed out that “this contraction was fundamentally explained by what happened with transactional means of payment, given that fixed-term deposits remained practically unchanged in the month.”
Later, the BCRA remarked that “the balances of time deposits in pesos of the private sector They remained around the maximum levels of the last decades, both at constant prices and as a percentage of GDP.
The official part points out that “the Monetary Base adjusted for seasonality and inflation, on average in May, would have exhibited a fall of 2.7% (-10.9% year-on-year) and in relation to the GDP, the Monetary Base would be at 5.2%, at its lowest value since 2003”.
The BCRA emphasized that “loans to the private sector at constant prices contracted again in the month, accumulating four consecutive months of falls. Most of the lines registered falls with the exception of collateralized loans and discounted documents.”
In relation to the support in foreign currency, the International Reserves of the BCRA ended May with a balance of 41,561 million dollars, reflecting a decrease of 446 million dollars compared to April.
“The decrease was explained by various factors. In the month, the payment of interest made to the International Monetary Fund (IMF) for US$364 million had a negative impact, as well as the loss due to the valuation of net foreign assets and the variation in balances in dollars in current account at the BCRA. These effects were partially offset by the net purchase of foreign currency from the private sector, which contributed positively in the month 784 million dollars”, detailed the monetary authority.
Source: Ambito
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