translated from Spanish: To control inflation, the Central Bank increased Bank

the Central Bank lace came up today by 3 percentage points the laces for all deposits in pesos, both in sight and term for financial institutions, which are they are now located at 31%.

In a statement published on its official website, the Monetary Authority said: “Considering that each requirement of minimum cash in pesos point represents approximately $20,000 million, the measure will generate an absorption of liquidity of $60,000 million”.

The institution which directs Luis Caputo said to be committed to the anti-inflationary process and considered that, to achieve this objective, is fundamental to “control stronger liquidity in the money market”.

The lace is the percentage of deposits that must be kept banks as book and raise its percentage allows to absorb the market weights.

The decision, which was instrumented through communication to 6550, came into force on Thursday “and will not alter the exceptions and existing franchises”, they clarified.

This measure aims to “dry” plaza de pesos amid the escalation of dollar, and also looks for banks to invest in instruments such as the Nobac (notes of the Central Bank), which have longer duration than the Lebac.

However, the Monetary Authority tenders Nobac and results were not expected, since there was very low offer and the bid was declared void.

With one greater fit, is subtracted him liquidity into demand for dollars by financial institutions in the wholesale market.

Source: NA

Original source in Spanish