Deposits in dollars increased more than US$2,250 million since Javier Milei took office

So that, So far this year, they have accumulated an increase, in absolute terms, of about US$585 million, while Since the change of government, the stock of argendollars has grown by US$2,257 million. It is undoubtedly an encouraging sign from the people and companies that not only maintain these placements in the domestic financial system but even increase them. This recovery has allowed us to return to stock levels similar to those of mid-March of last year.

But when analyzing how this recovery took shape, it is evident that most of it corresponds to Decemberstarting on the 10th, a period in which the stock of argendollars increased by more than US$1,672 million. Then In January they grew another US$164 million and so far in February, as of the 28th, the latest official data, they have grown US$421 million.

Deposits in dollars: why is the behavior of argentdollars important?

The behavior of deposits in dollars is a very important variable to follow because They are directly linked to the international reserves of the BCRA, given that the reserves of these placements in foreign currency are computed as part of the gross reserves of the monetary entity.

Hence the reason why analysts monitor the day-to-day life of Argentollars, since When they grow they increase the stock of gross reserves and vice versa. In this sense, BCRA reserves via Argentollar reserves grew by more than US$1.2 billion between December and so far in February (In the same period, total gross reserves grew almost US$6,085 million. That is, Almost 20% of the increase in gross reserves corresponds to the increase in reserve requirementswhich explains, in part, the importance of argentólares.

But also, they are the raw material so that at the local level banks can offer companies, especially exporters and related companies, financing in dollars, something that not all local demanders can access in the international market. And already, part of the recovery of deposits was transformed into more credit supply, which has allowed the stock of dollar loans to the private sector will exceed US$4.1 billion, levels similar to those at the end of 2021.

It should not be overlooked that in 2023, in the midst of the electoral battle, the Argendollars suffered political turbulence and economic uncertainty and thus, between January and July 2023, the stock recorded a drop of more than US$825 million, while between August and November it intensified to more than US$1,360 million. In a nutshell, almost US$2.2 billion left the banks, and therefore the BCRA reserves also suffered.

Deposits in dollars: how was the recovery?

After the strong increase in December, the pace of growth slowed in January, but remained stable and in February it regained momentum to climb to levels of US$16 billion, recovering stocks similar to those of April 2023.

Now in February, there was a meager start with average falls of US$25 million, then some recovery was observed, growing US$18 million on average, but in the third week they were reborn, growing an average of US$85 million. In the last part of the month, they rose by more than US$330 million weekly average.

It must also be kept in mind that the argendollars They usually grow at the end of each year for tax reasons and then at the beginning of the following year these placements leave the system. But, so far in 2024, Argendollars show some stability and growth, a good omen for the BCRA’s reserves.