Time deposit comeback
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With just some small variations, these conditions remain stable in order to keep on attracting time deposit comebacks. Rates have actually dropped slightly to 16.5 per cent and it is estimated that during the next few weeks it will be difficult to see them fall under 16 per cent.
«It's true that things have calmed down during the last few weeks, but it will still take some time to overcome last May's episode, given the great deposit outflow», indicated a local bank executive.
One encouraging piece of information is that, even though big investors were the ones pulling money back into time deposits, during the last two weeks some small investors have followed their path to take advantage of high rates and a quiet dollar. A report by Econviews consulting firm, states that «retail time deposits are recovering and have even reached AR$44.575 billion on June 27, after having hit AR$43.8 billion on June 18».
· Cheap asset
Anyhow, people are still buying dollars at a significant pace, as they perceive it as a cheap asset.
After Congress approval of export tariff bill -and still pending Senators' approval-, the financial market does not expect any substantial change in the market mood. But they assure that many entities ended up with excessive liquidity, and so it is possible that rates start falling gradually.
This will depend on the evolution of deposits during the next days.