The BCRA increased minimum reserve requirements by 3 p.p. for both sight and term deposits in pesos. Thus, considering that each minimum reserve requirement percentage point in pesos stands for about ARS20 billion, this measure is intended to absorb liquidity by ARS60 billion. The BCRA holds that closer monitoring of liquidity in the money market is key to reduce the recent volatility in the foreign exchange market and to strengthen the BCRA’s anti-inflationary commitment.
The decision was laid down in Communication A 6532. It is effective as from today and will change no existing exceptions or exemptions. It will neither affect UVA- or foreign currency-denominated accounts and deposits.
The increase in the minimum reserve requirement established today will only be met in pesos and is aggregated to another raise of 3 p.p., effective as from June 18, and to 2 additional percentage points that will be effective as from next July 18, as set forth in Communication A 6526 released on June 18. Regarding the 2 additional percentage points, they can be met either in pesos or by means of National Treasury Bonds in pesos at a fixed rate maturing in November 2020 and valued at market price.
