Virtual wallets, and especially the Argentines who choose them as an investment vehicle, are one of these main losers of the Central Bank’s surprise decision to lower the economy’s rates. Although with some delay, most of the funds in which these apps place their users’ balances have already started to do so cut the returns they offer for those pesos.
From Tuesday, the Central Bank removed minimum rate floor which allowed banks to charge fixed terms. The country’s main banking institutions immediately responded by cutting the yields on these placements, which went from 110% per annum to the 70% offered today.
But also the Central”“excluding” funds money market of the desk, the letter from the reference body for the economy, which has a new rate of 80% per year, in deciding Only banks can access this rate.
The so-called money market funds or T0, with immediate availability of investments, have remained trapped in the fixed-term and remunerated accounts of the banks. Therefore, the maximum return they could offer monthly would be the 5.8% offered by bank placements, although as a general rule FCIs They do not “report” all profits from the instruments in which they invest.
For now, most portfolios do not reflect this rate cut. On the one hand, because the funds on which they are backed invest in a basket of fixed terms that were made before the rate reduction made by the banks this week. Therefore, in the next few days, they will continue capturing fixed term returns when they offered 9.1% monthly.
On the other hand, because what most accounts reflect in the apps is the average performance of the last 30 days. That is, by definition, these investment vehicles report past returns. Not on the profits they will have in the future.
So, for example, the wallet Payments market still reports a nominal annual rate of 86.5%, although the annual return you will pay from now on will certainly be smaller. The same happens with the pesos in which you invest Personal payment: the portfolio reports an annual profit of 88.3%; While Uala reports an annual rate of 88.8%.
However, the actual returns from these investments would be much lower. According to the calculations of the comparatasas.ar website, Orange It would be the portfolio that pays the most, with an annual TNA of 90%, although with a caveat: the Cordoba fintech does not use an FCI as an investment vehicle, but rather it is a remunerated account.
Meanwhile, Mercado Pago, the option most used by most Argentines, would earn a return of around 70%. A little better than what the banks’ T+0 funds offer: the Fima Premiumof Galicia, today yields 68.7%.
Leave the money alone is not an option in this contexttherefore in the City they believe that, although there are options with higher performance, wallets will not lose their favorite place among Argentines, at least for now.
Source: Clarin
