He BCRA seeks that the banks accept all the dollars that savers can bring to the entities and that is why he will offer them Until next December, the option of receiving banknotes in poor condition at the monetary authority and sending them to the United States Federal Reserve to exchange them for new ones.
The decision was adopted in Communication A8079 and represents a solution for many savers.
Although the Federal Reserve considers dollar bills issued after 1914 and in any state of preservation to be legal tender as long as they retain more than half of their paper value, some Argentine banks do not accept damaged bills or the famous “small face” bills from their depositors.
The Central Bank will now allow entities to “deposit” these bills in the BCRA and then send them to the Federal Reserve for exchange.
The important thing is that this will not have an extra cost for Argentine banks, which already use the BCRA’s “service” of importing banknotes.
The Central Bank’s communication stated that this “benefit” for financial institutions will be available until the end of the year.
He also explained the conditions in which banks will not be able to accept US banknotes in poor condition: “These are those that have been damaged to the extent that half or less of the bill remains, or their condition is such that their value is questionable. For example: burned bills or those damaged by liquids that cannot be handled without compromising their integrity,” he explained.
Although the entities are not obliged to accept these damaged dollars as a result of this measure, which is optional for the banks, the Government estimates that a good part will begin to do so in order to “renew” its supply of banknotes.
The BCRA measure may also support first stage of bleaching which is aimed at small savers and allows them to verify their holdings of up to US$100,000 and deposit them in special bank accounts at no cost, if done by September 30.
According to INDEC calculations, there are more than US$200 billion dollars “under the mattress” in the country: either deposited in safe deposit boxes or hidden in different places.
The Government’s bet is that part of these dollars will “re-enter” the formal financial system.
Source: Ambito
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