Savers face the expiration of their 90-day UVA fixed terms that they placed after the rate reduction that the BCRA applied on December 18, but they cannot do so for regulatory reasons.
Those who put their money in a UVA fixed term 90 days three months ago, after the first drop in traditional rates applied by the Central Bank (BCRA) Just a few days after Javier Milei takes office as president, these days they have to decide what to do with their pesos when the term of that instrument expires. Many want to renew it for another 90 days, but they are not being able to do so. And this has its explanation in a regulatory issue.
And on December 28th, the BCRA decided to double the minimum stay period established for the fixed deadlines UVA, this was established this Thursday and, in this way, increased it from 90 to 180 days (about six months).
The measure, which was ordered through the Communication “A” 7929was a hard blow for savers and one more step in the liquefaction of liabilities in pesos carried out by the economic team.
The aforementioned rule established that, “effective for the impositions that are collected from the day following the publication of this communication, in 180 days the minimum term for Deposits with early cancellation option in Purchasing Value Units (UVA)”.
How was the change for UVA fixed terms?
That was just 10 days after the Central board decided to lower the rate of traditional 30-day fixed terms to 110% (Annual Nominal Rate, TNA) from 133% and, in this way, the monthly yield of these savings instruments became 9.04%, when until that moment, it was 11%. With inflation of 25.5% in December, 20.6% in January and 13.2% in February, the rate remained very negative in real terms.
The only investment instruments left to the saver as an option to protect against inflation was the UVA fixed termtherefore, additionally, the BCRA indicated that it was necessary for “the Bank System continue offering the public adjustable fixed-term deposits by UVA” and pointed out that this was key to providing predictability to the availability of resources.
Thus, there was a massive migration of pesos towards these bank savings instruments and the banks: according to the numbers available from the Centralsince the change of government and until February 19, lUVA fixed-term placements increased almost 100% (99.6%).
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
