Following the lifting of the currency controls for individuals, dollar deposits increased by more than US$ 1 billion, according to the Central Bank. This rebound, which was reflected in a significant rise in private sector dollar deposits, is a good sign for the Government as it strengthens international reserves.
The latest data from the Central Bank, as of April 25, indicates that private sector dollar deposits exceeded US$ 30.2 billion, while public sector deposits in financial entities amounted to just over US$ 2.5 billion. This recovery occurred after a negative start to the year, during which foreign currency deposits decreased by US$ 2.5 billion before the lifting of currency controls.
The implementation of the band system by the Government on April 14 seems to have changed expectations and allowed individuals to purchase foreign currency more freely, which had an immediate impact on the Central Bank's indicators. However, savers unwound fixed-term placements in pesos amounting to $1.76 trillion.
According to the Central Bank data, Argentinians have more than US$ 200 billion outside the formal financial system. The increase in dollar deposits was boosted by the disbursement of US$ 12 billion from the International Monetary Fund, which helped to strengthen international reserves and generate confidence in the market.
