Monthly report on the evolution of the monetary base, international reserves and foreign exchange market.
1-Synthesis
In October, the private M3 broad monetary aggregate, in real terms and adjusted for seasonality, would have registered a decrease of 1.6%, with falls in all its components. As of the first week of the month, fixed-term placements showed a drop that was verified in the segment of deposits of more than $20 million, and was associated, on the one hand, with the fact that part of these funds would have been channeled into the auctions of Treasury Bonds linked to the value of the dollar and, on the other hand, there was a restructuring of the portfolios of the Mutual Funds (FCI) Money Market, observing a transfer of funds from investments with an early cancellation option to interest-bearing demand deposits.
As part of the process of harmonizing interest rates for monetary policy instruments, the BCRA raised the interest rate on 1-day passive passes on several occasions, bringing it to 31% n.a. at the end of October (36.32% y.a.), while reducing the LELIQ rate to 36% n.a. (42.64% y.a.). In turn, it raised, as of October 16, the minimum guaranteed interest rate on fixed-term deposits in pesos, which was defined at 34% n.a. (39.84% e.a.) for deposits of individuals for an amount of up to $1 million and at 32% n.a. (37.14% e.a.) for the rest of the deposits of the private sector.
In real terms and without seasonality, loans in pesos to the private sector would have remained at a level similar to that of September. With regard to commercial financing, the line for working capital to MSMEs and Health Service Providers accumulated disbursements for a total of $537,559 million at the end of October, more than doubling what was initially planned. In addition, the BCRA approved a new productive financing scheme, which will reduce and focus credit assistance at negative real interest rates, in a context of gradual recovery of economic activity.
The new lines of financing for productive investment of MSMEs are intended for the financing of capital investment, with a maximum interest rate of 30% n.a. Working capital will also be financed at a maximum rate of 35% n.a. and, finally, there will be a line of credit for non-MSME customers that will reach Health Service Providers that provide hospitalization services in the framework of the COVID19 emergency and other companies for the acquisition of machinery and equipment produced by MSMEs. This line will also have a maximum rate of 35% n.a.
