Summary
• The BCRA’s policies continue to generate a context of stability and confidence that is reflected in the continuous expansion of the demand for domestic currency. Thus, in November, monetary aggregates continued to follow the growth path that began in the middle of the year. Private means of payment registered a monthly increase of 2.1%, showing a growth of 13% in the last twelve months. On the other hand, total means of payment (M2) reached an average of $180,930 million (13.4% YoY), registering an increase of 1% in the month.
• The increase in demand for local money was reflected in the total deposits in pesos, which increased 1.5% in the period, driven essentially by placements belonging to the private sector, which showed an increase of 3.3%, with an acceleration of their growth compared to that recorded during the previous months. The evolution of time deposits stands out, which after the monthly increase in November (4%), completed a rise of $7,600 million (13.2%) in the last 4 months.
• The liquidity of financial institutions – which includes current accounts at the Central Bank, cash in banks, net passes agreed with the Central Bank, and LEBACs and NOBACs – stood at 37% of total deposits in pesos (0.6 p.p. above the October level). In turn, financial institutions as a whole ended November with a surplus in the Minimum Cash position in national currency equivalent to 0.5% of deposits in pesos.
• Loans in pesos to the private sector continued to show increasing dynamism. In November, total loans showed an average monthly increase of 1.2% ($1,440 million), registering the largest expansion in the last 12 months. Although all lines showed increases, loans mainly for consumption continued to show greater dynamism, exhibiting an increase of 2% ($940 million). Meanwhile, mainly commercial loans showed an increase of 0.9% ($380 million), while balances of loans with real collateral grew 0.5% ($120 million).
• The main short-term passive interest rates decreased during the month. The monthly average of the interest rate paid by private banks in the wholesale tranche and for deposits of up to 35 days (BADLAR) stood at 10.7%, with a monthly decrease of 1.2 p.p..
For its part, the monthly average of the interest rate paid by private banks to retail placements, for the same term, fell 0.8 p.p., standing at 10.3%.
• Lending rates also declined during November. The average interest rate on current account advances with prior agreement granted by private banks in Capital and GBA, granted to companies, for up to 7 days and for amounts greater than $10 million, stood at 11.4% with a decrease of 1 p.p. compared to the average observed in October.
