Argentina bank dollar deposits reach record US$42 billion

Dollar deposits in Argentine banks have reached a historic high, surpassing US$42,000 million. According to data from the Central Bank of Argentina (BCRA), private sector foreign currency placements reached US$42,146 million as of October 2. In September alone, total deposits rose by US$1,021 million, a 2.5% increase. This growth was primarily driven by savings accounts, which reached US$29,830 million, and fixed-term deposits, which totaled US$11,623 million.

This trend toward dollarization reflects a persistent preference among individuals to hold foreign currency in bank accounts. While the influx of dollars—potentially bolstered by energy resources from Vaca Muerta and increased mining—could alleviate long-standing scarcity issues, it presents new economic challenges. Experts note that a structural strengthening of the currency could lead to an appreciation of the real exchange rate, potentially harming the competitiveness of manufacturing and service sectors by creating a dual economy.