In that sense, he explained that “Banks must have a neutral exchange position, precisely because deposits are a liability for entities, they must be backed by investments in that currency.”
He also recalled that “All deposits in foreign currency have assets in the same currency that back them.” Further, “There is a specific regulation with more than 20 years of validity that particularly requires that deposits in dollars be backed by assets in dollars,” he said.
On the other hand, financial institutions “They have record liquidity in dollars and pesos”, emphasized.
Fake News
During this weekend, an alleged Central Bank circular addressed to banks went viral on WhatsApp and other social networks with the deliberate purpose of generating a bank run, BCRA sources said.
The message that was marked in the groups as “forwarded many times” says: “Received a few minutes ago, I share it: It is very important to inform you that it was made official, through Communiqué “A7405 and A7407”, both from the Central Bank of the Argentine Republic (BCRA), which, effective as of 12/01/2021 (Wednesday). Banks and / or financial entities framed within the Argentine financial circuit, may not have foreign currency in their reserves. Any financial position or equivalent in dollars must be settled and remitted to the BCRA’s reserves. In other words, a COVERED CORRALITO. Therefore, we recommend to those who have dollars in bank accounts, that on Monday and Tuesday of this coming week, take turns and / or go to their bank to withdraw those balances“.
Paradoxically, this Tuesday marks 20 years since then-President Fernando de la Rúa and his Minister of Economy, Domingo Cavallo, decided to create the “corralito”, which days later, on December 3, 2001, prevented savers from withdrawing their deposits of the banking system, at the beginning of the collapse of convertibility.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
