Dollar deposits in Argentina have hit a historic high of over $39 billion, but banks indicate that savings held outside the banking system have yet to be brought in.
Argentina's dollar deposits have recently reached a historic high of over $39 billion, the highest value recorded since the Convertibility Plan. Analysts from the consulting firm 1816 reported a significant increase last Monday, with over $800 million added to the banking system in just one day. The government is optimistic that the total could approach $40 billion soon, especially if the influx of savings that individuals typically keep 'under the mattress' begins to materialize due to a fiscal amnesty initiative.
As of March 2, 2023, the total dollar deposits were officially reported at $39.15 billion, marking an increase of approximately $785 million since the last business day of February. This increase is believed to be linked to the payment of 'Bopreales,' a bond issued by the government aimed at settling debts incurred with the importing sector during the previous administration. Economic officials are hopeful that this trend will continue, further boosting the banking sector's reserves.
Finance Minister Luis Caputo has recently emphasized the importance of converting informal savings into formal bank deposits, aiming to stabilize the economy by reducing reliance on less secure storage methods for wealth. While the significant growth in deposits is a promising sign for the economy, the government continues to undertake measures to encourage individuals to trust banks with their funds rather than keeping them outside of formal financial systems, which could enhance liquidity and investment in the longer term.
