2023-09-20 20:19:04
In the current Argentine context, investments may be significantly affected. One of the instruments financial instruments most used in the country is the fixed termwhich offers several advantages such as security, partial liquidity, stability and predictability.
However, due to the inflation index, the returns on this type of deposits do not exceed the dollar increase, which implies a decrease in purchasing power over time.
For some time now, inflation and interest rates on fixed terms have fluctuated significantly. When analyzing data from the last 5 years, the price of the dollar has risen rapidly as a result of inflation in Argentina, especially in the last two years, where inflation accelerated significantly.
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The interest rates offered on fixed terms have been below inflation levels (negative real rate), which has resulted in a loss of purchasing power for investors.
In 2019, the official indices indicated 53.5% inflation and the average rate of fixed terms was 12.1% higher, which generated a profit for those who chose this option. However, the situation changed the following year, when inflation was 2.3% above investors’ profits. By 2021, the wear and tear on fixed terms was 12.9% and in the last year and a half the drop added half a point.
In fact, 2022 showed a surprisingly high inflation of 94.8% compared to the fixed term rate, which was much lower at 57.17%. Until August 2023, meanwhile, accumulated inflation was 80.2% (monthly 12.4%) with an average interest rate in fixed terms of 89.72% (monthly 7.47%); while the MEP dollar increased 97.85% annually. It is important to note that rates are always expressed annually, which may affect month-to-month comparisons.
Fixed term or MEP dollar
In view of this situation, it is essential to consider some investment alternatives that can protect and grow savings in a context of these characteristics. In Argentina, the purchase of dollars is a well-known and used strategy to protect savings. This practice is an easy and safe way to protect the value of money in an environment of constant devaluation of the peso.
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Recently, the purchase of the MEP dollar has become popular, a legal exchange rate used for financial operations, which is obtained through the purchase of bonds in Argentine pesos and their subsequent sale in dollars abroad.
This instrument allows investors to maintain their savings in dollars once morest the volatility of the Argentine peso. At the same time, it gains space compared to other more popular alternatives, but which, in recent times, have not been able to overcome the difference with inflation and the rise of the dollar.
By Ezequiel Baigorria, Reba Product Owner.
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