The flexibility of dollar loans aims to increase the supply of foreign currency in the official exchange market to purchase more and bolster reserves. The demand for dollar credit has revived since Javier Milei's assumption, with net purchases of over $3.1 billion accumulated by the BCRA so far this year.
Enrique Pizarro from PPI highlights that the funds loaned must come from abroad, which Galicia could explore, the only bank that has placed a dollar ON so far. The measure is considered relevant in a context where BCRA's purchases are explained mainly by financial flows.
Alejo Costa from Max Capital points out that the expansion of financing in dollars will not be significant, as dollar funding represents only 1.1% of the local system's liabilities. Although there is a risk of currency mismatch by banks, they will have to perform their corresponding credit task.
Despite the flexibility, funded credit will continue to be limited to external credit lines or corporate bonds, which reduces the fear of systemic risk. Private deposits in dollars have decreased, limiting the growth of loans.
Claudio Caprarulo from Analytica emphasizes the importance of waiting for the details of the regulation and the strategies adopted by banks. The Central Bank seeks to pave the way to attract more foreign currency and maintain financial balance.
