According to data from the BCRA, the base totaled $3.4 trillion last month. This was mainly explained by the dismantling of remunerated liabilities in the context of the migration of debt to the Treasury. There was an upturn in the demand for money.
The monetary base grew strongly in June. According to data from the Central Bank, it rose 16.2% monthly without seasonality in real terms and was up for the third consecutive month. This implied an expansion of the money supply of $3.4 trillion.
The main explanation behind this figure is the process of dismantling the repo accounts by the banks, within the framework of the migration of remunerated debt from the BCRA to the Treasury. A process that began almost at the beginning of the administration, which the Government decided to accelerate in May and which it now intends to complete with the placement of the new monetary regulation bills.
“In response to the growth in demand for transactional money, the Monetary Base registered an increase in end-of-month balances of $3.4 trillion in June. It should be remembered that both the increase in the currency in circulation held by the public and the increase in unremunerated demand deposits impact the demand for the Monetary Base, the first in full and the second through the reserves deposited in the current account at the BCRA. This expansion in the demand for the Monetary Base was supplied by the dismantling of the passive repo position by financial institutions and the interest paid on these remunerated liabilities,” the Central Bank said in its Monthly Monetary Report, published this Friday.
Developing
Source: Ambito
