The decision adopted last week by the BCRA regarding banks’ foreign currency position has no effect on either deposits in dollars in the financial system or their backing.
Banks have a neutral foreign currency position because deposits—which stand for liabilities—must be backed by investments in the same currency.
In other words, all deposits in foreign currency are backed by assets in the same currency. In addition, a specific regulation—in force for more than 20 years—requires financial institutions to have deposits in dollars backed by assets in dollars.
Moreover, banks currently have record liquidity levels in pesos and in dollars.
