In 2019, when this operation was also in force, the FCI rate was equal to 70% of what banks would get. This is relevant, according to an analysis by one of the star advisors of the local financial market, which was circulated among analysts at the beginning of the conference, because during 2019, when he enabled the possibility of conducting repos for FCI, ” For just a few months, 80% of remunerated accounts went into stock repos, which came to represent half the wealth of the money market”. This affects the income of banks for interest-bearing accounts.
To operate the pass, FCI should have a central bank account, If they don’t have it, they have to process it. When the day ends, the BCRA sweeps the money they leave on sight and constitutes a pass, official sources explained to this newspaper.
With regard to the types of operations that FCIs can conduct, the regulations do not limit the possibility that any FCI can conduct repos, which would not only be limited to the money market. This was confirmed by at least two official sources. According to the above consulting firm’s analysis, this is significant because money market funds have better returns on interest-bearing bank accounts than T+1 funds, “because in the case of money market vision accounts, financial institutions have zero reserves.” There are requirements, some are not so from the FCI point of view.”
“If the BCRA now offers an FCI pass that pays the same (or more) as the money market “remus” payout, T+1 may also be tempted. If so, the measure would be to fund sovereign papers.” may limit demand, considering that 52% of T+1 portfolios are sovereign today”, he clarified. In relation to this observation, last week Ambito consulted with various official sources, who commented that he was not present at the board’s debate, but that he would closely monitor how this could affect Treasury funding in the following tenders. Is.