Summary
In January, the private M3 broad monetary aggregate would have registered, in real terms and adjusted for seasonality, a slight increase (0.6%), after three consecutive months of negative variations. Within it, time deposits were the ones that made a positive contribution to the variation of the month, rather than offsetting the negative contribution of means of payment.
The monthly growth of time deposits was 8.1% nominal, which would be equivalent to an expansion of 4.4% in real terms and without seasonality. Thus, they began the year with a year-on-year rate of expansion at constant prices close to 25% which, although it implied a slowdown compared to the historical maximum reached in October, continues to be above the maximum reached in the 2004-2019 period.
The increase in term placements was made up of both wholesale placements and those of less than $1 million. The latter once again showed an upward trend, after three months of remaining stable. Deposits denominated in UVA also showed greater dynamism, which in January accumulated an increase of close to $11,100 million.
In nominal terms and without seasonality, loans in pesos to the private sector would have registered a monthly increase of 3.7% in January. In real terms, the balance of loans to the private sector would be showing a year-on-year growth of 8.4%. The monthly expansion of loans in pesos was mainly explained by the evolution of commercial lines and credit card financing. With respect to the latter, the BCRA decided to maintain the maximum rate of 43% n.a. for the financing of unpaid balances of credit cards up to $200,000 for each card issued.
Commercial credit was channeled mostly through the Financing Line for Productive Investment (LFIP) to MSMEs. At the end of January, loans had been granted for approximately $240,550 million, 44% more than at the end of December. As for the destination of these funds, around 83% of the total disbursed corresponds to the financing of working capital and the rest to the line that finances investment projects.
The Central Bank was, once again, a net buyer of foreign currency in January. This, added to the increase in the current account of financial institutions at the BCRA, exceeded the fall associated with net payments to international organizations. Thus, the balance of International Reserves accumulated an increase of US$105 million compared to the end of the previous month, ending January at US$39,515 million.
