The fixed term is one of the simplest instruments to operate and provides a return that is known at the time it is established, making it one of the favorite investments of Argentine savers along with hoarding dollars.
To reduce the demand for the latter, the government has increased the rate of fixed terms for encourage this instrument of savings in pesos.
A few weeks ago, the board of the Central Bank of the Argentine Republic (BCRA) maintained no change in the monetary policy rate.
And he warned that he will continue to observe the evolution of the inflation rate, which marked a slowdown in November, both at the general level, 4.9%, and in core inflation, 4.8%. After the announcement, specialists confirmed whether it is convenient to bet on a common fixed term or if it is better to invest in another financial instrument.
Currently, the fixed term rate offers a yield of 75% per year (TNA), while the annual effective rate (TEA) is 107%.
From what amount AFIP investigates your investment in a fixed term
In this financial context, banks must report the movements of user accounts and cards from a minimum amount.
From what amount should banks report to the AFIP the movements of accounts and fixed-term deposits?
The Federal Administration of Public Revenues (AFIP) raised in the last update from $30,000 to $90,000 the minimum number to inform the accreditations, withdrawals, account balances and the fixed-term deposits.
As stated by iProfessional, this amount of $90,000 is monthly and includes all types of accreditation. That is, it is not limited only to fixed terms, but also covers deposits, received transfers and account balances, so it is not a significantly high amount.
In addition, at the time, the minimum amount from which financial entities must report debit card consumption was increased from $10,000 to $30,000.
With these modifications, banks will be able to streamline operations and, in turn, They will receive automatic and permanent information on monthly accreditations, withdrawals, account balances, term deposits and card consumption.
Will fixed-term rates go down? Why is the Government studying the measure?
The accelerated rise of interest rates of the past months met the objective sought: avoid a new currency crisis. Currently, the cost of money has remained positive in real terms, as agreed with the Monetary Fund.
Sure, the negative impact This measure was already known in advance: the increase in the cost of credit reduces investment and also consumption. That is why the government evaluates a lower interest rates. However, wait for inflation to consolidate a slowdown before defining the measure.
The effect on economic activity is inescapable. This is demonstrated by the latest official data.
The slowdown in inflation prevents the BCRA from continuing to raise rates.
Specifically, the level of credits to the private sector (companies and individuals) carries five consecutive months of decline. This trend is related to the number of months that the official strategy of maintaining a positive interest rate against inflation takes.
During November, the volume of loans to private companies fell by no less than 12.5%, in real terms, after inflation, compared to the same month last year. The drop against October was less dramatic, 0.4%, according to a report by the LCG consultancy based on Central Bank records.
Loans to companies contracted 8.6% last month versus November 2021, when economic activity took off strongly after the pandemic, and with interest rates lower than current ones. In fact, today the effective annual rate of fixed terms is already at 107%, but the cost that banks charge to companies and consumers can double that return.
So far this year, bank lines for companies show a contraction of 14.7% (real). If the current level is compared to the peak that credits had in May 2018, just at the time the currency crisis began during the Macri administration, the drop reaches 45%, always speaking in real terms.
