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Private deposits in dollars grew 10.8% in December, their largest increase since 2016

In November, these deposits had fallen 1.3% monthly, reflecting a recovery in December.


The deposits in foreign currency They exhibited the highest increase since October 2016. According to LCG, they increased 10.8% monthly in December (which represents an increase of US$1,535 million) reaching US$15.8 million. In November, these deposits had fallen 1.3% monthly, reflecting a recovery in December.

However, deposits in pesos continue with the contractive dynamics for four months and reflected a real monthly drop of 5% in December. In annual terms, they accumulate a real decrease of 17.7% (vs. -4.1% the previous month).


Fixed term: placements fell 25.4% in December

According to the consultant, the placements fell 25.4% in real terms in December, the lowest drop in 20 years. “This fall can be explained because term placements are unattractive given the decision by the BCRA to lower interest rates combined with a high inflation expectation for December.” In annual terms, term placements fall to 45% in real terms.

Going forward, LCG affirms that fixed terms continue to present a low renewal rate in relation to the average of the last three years. “Currently the rate is 86%, 16 pp less than the average. It is also 6 pp lower than the December renewal rate.”

Fixed deadline: what to expect in January

According to the analysis, with the December rate adjustment, the BCRA caused the 9% monthly rate be negative due to inflation expectations. At the same time, the BCRA ordered the extension from 90 to 180 days of the minimum term for deposits tied to inflation, which today represent only 0.4% of total term placements, therefore, we do not expect a recovery of these”.

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