The lowering of rates ordered by the BCRA will affect the banks’ offer of fixed terms and, therefore, also the returns of virtual wallets that invest in FCI money market.
Digital wallets: after lowering BCRA rates, how much does each company pay
He Central Bank (BCRA) reported this Thursday, through the SIOPEL system, that it ordered a new reduction in monetary policy rates of 10 points and took it to 60%. Is about the fourth rate cut and the second in a month that applies the current management of BCRAin hands of Santiago Bausili. This will affect the banks’ fixed term offer and therefore also the returns of virtual wallets that invest in FCI money market.
It should be noted that behind the apps that pay to keep the money there there is a Money Market Investment Fund or money market, which is an instrument that invests daily and shows the interest it generated every day. They are technically called immediate liquidity funds. But, What do Money Market FCIs invest in? in wholesale Fixed Term deposits, sureties, remunerated current accounts and liquidity in other currencies.
It is so If the impact of lower rates affects fixed terms, it also affects FCIs with these characteristics. “The BCRA resolved to lower the repos rate from 70% TNA to 60% TNA. This is equivalent to an effective rate of 82.1%, and a monthly rate of 5.05%. We will probably see the fixed term rate drop towards the area of approximately 50% TNA”they explained after learning of the BCRA’s decision from Roman Group.
On the other hand, the stock sureties They also had a strong setback, since the shortest ones fell up to 13%. FCI money markey also invest in these instruments. The guarantees are like fixed terms but in the stock market. After the news of the reduction in the BCRA’s monetary policy rate became known, they also had a strong correction. Those that are for one day had a TNA of 54% and those that are for four days, a TNA of 56.5%.
“Obviously we will see a drop in Money Market yields. “They will probably be in a range of between 50/55% TNA”he told Ámbito, Andrés Reschinianalyst F2 Financial Solutions and assured that We will have to be attentive to whether the BCRA announces some other modification beyond the new 10-point reduction in monetary policy rates.
When digital wallets paid until now and what we can expect
According to a report by MegaQM, to which he agreed Ambitbefore this announcement The FCI Money Market were offering a return of around 4.9% monthly. The strategy until last week was the following: “Starting with the deregulation of term deposit rates, the financial system once again became a wholesale fixed-term borrower and that allowed us to increase the weight of this type of investments in the portfolios of the Money Market FCIs.”
To see how much an FCI money market will pay from now on, the readjustment of the rate offered by the banks can be taken as a reference. Right now the Nation Bank offers for Deposits from 30 to 60 days created in the branch have a TNA of 60%, which is a monthly rate of 3.94%. The other private banks are offering similar returns.
Source: Ambito
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