Uncertainty Around New President's Economic Plans Prompts Argentine Banks to Shift Funds
• Argentine banks are shifting funds out of central bank notes into more liquid, short-term securities due to uncertainty around president-elect Javier Milei's economic plans • Banks rolled over just 10% of central bank notes offered at recent auctions, down sharply from before the election, preferring 1-day repos • Milei has called the central bank notes a "problem" that stokes inflation but given no policy specifics, leaving banks wary • The shift is causing tension, with the potential to release more pesos into the economy and boost already high inflation • Some banks have started rejecting or lowering rates on corporate deposits as they become more liquidity-focused amid the uncertainty