The Central Bank reduced the monetary policy rate from 35% to 32%. Due to this measure, the returns of virtual wallets began to change.
He Central Bank (BCRA) ordered a new reduction in monetary policy rates of 3 points and took it to 32% nominal annual rate (TNA). Thus, the banks’ offer of fixed terms was affected by the measure and, therefore, the returns of virtual wallets, which invest in money market Common Investment Funds (FCIs), were also modified.
Meanwhile, the Annual Effective Rate (TEA) is located at 37.14% based on this new adjustment made by the monetary regulator. So, The monthly effective yield (TEM) was set at 2.67%, somewhat below October inflation, which was 2.7% and expected for Novemberwhich -according to private estimates- will be between 2.8% and 3%. This information will only be known on December 11, but the Central Office is ahead of that date with this measure.
What rates do virtual wallets offer after the Central Bank change?
The change in monetary policy of the Central Bank generated an impact on the rates offered by virtual wallets. Thus, the latest surveys indicate that digital wallets offer, to date, the following returns:
- Uala: 40% TNA -remunerate up to $500,000 deposited-.
- Orange: 34% TNA -applies up to a limit of $600,000-.
- Prex: 32.2% TNA.
- Payment Market: 32.7% TNA.
- PersonalPay: 33.2% TNA.
- LetsBit: 30.0% TNA.
- Lemon Cash: 30.2% TNA.
The main virtual wallets cut their performance after the BCRA lowered the rate.
The BCRA announcement on rates
The Directory of Central Bank of the Argentine Republic (BCRA) reduced the monetary policy rate from 35% to 32% annual nominal (TNA). Consequently, the Annual Effectiveness (TEA) is located at 37.14% based on this new adjustment made by the monetary regulator.
So, The monthly effective yield (TEM) was set at 2.67%, somewhat below October inflation, which was 2.7% and expected for Novemberwhich -according to private estimates- will be between 2.8% and 3%.
It is worth remembering that Banks no longer apply regulated rate to fixed termbut they set it according to their criteria. It is expected that there will be a downward adjustment, although some choose to give a better performance because They need greater liquidity to face an increase in credit demand that is seen these days. Many dismantle the LEFI to counteract this greater demand for pesos, but others do not have those instruments under their belt and resort to seeking more flow.
Also, this Thursday The BCRA also modified the interest rate on active reposwhich was reduced from 40% to 36%. These percentages will apply from Friday, December 6. And, as explained by the BCRA, “the Board’s decision is based on consideration of the consolidation observed in expectations of lower inflation.”
Source: Ambito
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