Argentine banks pay maximum rate to retain dollars

(Bloomberg) – Argentine banks are willing to pay a high fee in order to keep their customers' greenbacks.

As the country's financial crisis deepens, people who have savings withdraw their dollar deposits from the accounts. But banks are struggling to retain them and now they already pay the highest returns in more than 3 years, while the central bank takes measures to provide liquidity and guarantee the supply of the US currency.

Since Friday, banks have increased the returns they offer in term deposits in dollars. The rate rose to almost 4%, its highest level in 43 months. The last time the dollar rates were so high was when the country's president, Mauricio Macri, abolished capital controls, a measure he revoked on Sunday.

Argentines who maintain savings have withdrawn dollars from banks since Macri's poor results in the primary elections caused the peso to fall more than 20%. Argentina's banking system allows people with funds in banks to save in pesos or dollars.

Argentine savers withdrew almost US $ 4.7 billion of dollar-denominated accounts from the day after the vote, according to official data collected until August 29. That equates to 14.5% of dollar deposits in the financial system, which led the government to take drastic measures that include the implementation of monetary controls.

Original Note: Argentine Banks Pay Highest Rate in 3 Years to Keep USD Savings

Reporter in the original note: Ignacio Olivera Doll in Buenos Aires, [email protected]

Editor responsible for the original note: Bruce Douglas, [email protected]

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