The decision of central bank of lower rates to disarm the leliqs, already caused a direct impact on the pocket of paid account users. Although they never performed equal to or above the inflation, This decision caused that performance to be even more negative than it was until a week ago. The first shock occurred in Payment Market, but soon it will be updated in all digital walletsas confirmed Ambit.
This change in monetary policy generated changes in the money market funds known as “Money market”. These invest in fixed terms, guarantees and passes. A first fact of this situation was reflected in a report by MegaQM where the FCI money market that paid the most, had a return of 107.6% annualized a week ago and, as of Tuesday’s data, it is already at 94.3%. That is, he had a down 13 points in that short period of time.
These platforms offer the possibility of obtaining passive returns from the account balance, without the need to immobilize the money, an option that became attractive to have money on the move. However, the fintech created by the founder of Free market was the first to take the first inevitable step that does not benefit users or wallets.
Agustín Onagoitydirector of Payment Market for Argentina he counted Ambit how this BCRA decision affected them: “obviously in the long run the incentive to pay off the balances will decrease a little. But we believe that even so, these returns are superior to having the money in cash, or standing still with a profit of 0%.” This Wednesday in the application Mercado Pago already shows a rate of 86.5%.
For now, Ualá, Personal Pay and Prex maintain the rate: 107.28% in the first case, 124.3% in the second and 123.01% for the last.
Orangefor its part, decided that until 12/31 the 110% TNA in the paid account. For the moment, the latter decide to absorb the cost and provide a better rate to their users for a while longer.
One of the virtual wallets mentioned revealed to this medium that they are at the expectation of the new measures and who prefer to wait before taking a concrete decision in terms of performance.
Where will the pesos go?
According to a recent study carried out by Payment Marketthe majority of Argentines choose the virtual wallet to confront inflation.
Investments that generate returns is the main factor why the 27% of users opt for digital accounts as the best means of payment to face inflation, above cash (16%), the use of credit cards (11%), homebanking (9%), debit cards (7%), virtual currencies or crypto (6%), transfer (6%) and checks (physical or e-check), (2%).
Damian Zuzek, SBS Asset Management in SBS Group consulted by Ambit He explained that with this modification, real returns “should be more negative against inflation given that investments eligible for Money Market Funds may present returns nominally equal to or lower than the current ones,” he explained. For the analyst, “possibly a Money Market Fund Migration to funds with market risk by large investors, although “We don’t see it being a massive movement.”
However, for conservative savers the transactional It will continue to be kept in virtual wallets even though the performance is negative. “Transactional placements will continue to be held in Money Market Funds despite the fact that the real return is negative, given that to achieve nominal returns that are close to inflation, they imply take on a lot more risk.”
In the case of an unsophisticated investor who has money market placements, either directly through investments in a money market or through what are called remunerated accounts of virtual wallets, which are nothing more than investments in money market funds. , “We estimate that these types of investments will continue.”
“We assume that They are very short term placements, and that do not aim at the medium or long term. Seeking returns that seek to match inflation implies assuming much more risk, for which a much longer period of time is needed for the investment. Any fund with a risk profile higher than the money market possibly has a recommended investment period well above 15 days,” he concluded.
Source: Ambito
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