Summary
• The average balance of total means of payment (M2) reached $166,150 million in April, registering a 9% growth in year-on-year terms. The dynamism exhibited during the second half of the month allowed the total M2 to end with an increase between balances at the end of the month of 1.3%.
• Private sector time deposits showed a dissimilar behavior during the month. After a first fortnight in which they maintained the downward trend observed in March, a change in behavior was observed from the middle of the month. Retail placements stopped their downward trend, while wholesale deposits registered a recovery.
• The liquidity of financial institutions remained at high levels. The sum of cash in banks, the current accounts of the entities in the BCRA and the (net) passes with the BCRA represented an average of 22.9% of deposits in pesos. Additionally, when incorporating the holdings of LEBAC and NOBAC by the entities, the broad liquidity ratio was 36.3% of deposits in pesos.
• Loans in pesos to the private sector showed a monthly growth of 0.8% ($930 million), driven mainly by financing instrumented with documents, personal loans and credit cards.
• Passive interest rates remained relatively stable during April. The monthly average of the BADLAR of private banks stood at 12.8%, while the monthly average of interest rates paid by private banks to retail placements, for amounts of less than $100,000, remained at 12.1%.
• During the month, a new monetary policy measure was implemented, aimed at preserving credit dynamics. In fact, on April 16, the Central Bank held the first auction of fixed-rate swaps for variable interest rates (BADLAR private banks) for terms of up to 5 years. This instrument helps to minimize the risks of interest rate movements by allowing banks to grant loans at a fixed rate and with terms longer than those currently observed in the market. At the same time, it acts as a reference for the term structure of long-term nominal interest rates. These operations will be executed once a month.
• Overall, interest rates on loans to the private sector remained stable or declined in April. In the most traded segment, corresponding to advances granted with agreements to companies for amounts greater than $10 million, in Capital and GBA, it reached an average level of 17.2%.
