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LatinNews Daily - 28 May 2021
In brief: Argentina’s central bank loosens banking restrictions
* Argentina’s central bank (BCRA) has changed domestic banking regulations to allow banks that operate in the country to keep a greater proportion of their reserve requirements in Argentine treasury bonds. Under existing regulations, banks that operate in Argentina are allowed to keep their reserve requirements in either current accounts, Letras de Liquidez (Leliq) bonds issued by BCRA, and treasury bonds (Bontes). According to a BCRA statement, banks that operate in Argentina will now be able to put in Bontes the proportion of reserve requirements that they are currently allowed to have in Leliqs, should they prefer to do so. The statement said that the aim of the measure is to “contribute to the development of the domestic capital market by creating a deep and liquid market for public securities, which is fundamental for the optimal functioning of capital markets”. The objective is to also make it easier for the treasury to place Bontes in the domestic market at a time when it has regularly resorted to this to try to finance the government due to Argentina’s inability to access international capital markets.
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- In brief: Argentina’s central bank loosens banking restrictions
- Publishing note