To limit the pressure on exchange rates, the Central Bank has once again put its hand on interest rates. This time, updated by 14.4 percentage points, the pass rate which applies to Mutual Investment Funds (MFCs).
In this way we pass from 54% to 68.4% from now on. This return for investors FCI represents 95% of what the Central Bank offers to banks for carrying out these same operations, and whose execution is 72% after the raise you ordered last week.
During the first half of January there was a net outflow of money market funds, some $55 billion, which were reportedly linked to agricultural companies that started betting on the dollar MEP. This rate hike puts pressure on collateral instruments to leap up to 70% of the TNA.
The BCRA raised the rate for reverse repurchase transactions from 70% to 72% on a business day on Wednesday. Meanwhile, for trades active within one business day, 95% to 97%. And before that, the institution had communicated that it would keep the reference rate unchanged at 75% (TNA), with an annual percentage rate (TEA) of 107%.
According to BCRA data updated to January 19, the stock of passive passes placed with financial entities reached $2,297,015 million, of which $1,216 million was in mutual funds.
Last week, and as a complementary measure to the announcement of the $1,000 million sovereign bond buyback, The Central Bank has decided to raise the Pass rate with which the monetary entity remunerates its very short-term debt securities, of one and seven days.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.