Central Bank to allow savers to pay with cash held in fixed-term deposits

The central bank will implement the new system, which will also allow people to transfer ownership of deposits, in November.

From November 2023, the Central Bank will allow savers to make payments using money held in fixed-term deposits. The bid to encourage Argentines to save in the national currency comes days after it was announced that inflation hit 94.8% in 2022.

From July, users will also be able to transfer fixed-term deposits made via online or mobile banking. Most platforms do not currently offer transferable fixed-term deposits.

The Central Bank’s board of directors announced the creation of a new system to facilitate these changes. Known as the electronic certificate for term deposits and investments (CEDIP), it will allow users to divide fixed-term deposits and use them for payment and financing.

Users will be able to transfer part of their funds and keep the rest in the fixed-term deposit. They can use the new functions for both commercial and private banking purposes and they can also be used in the stock market, according to a Central Bank press release.

The CEDIP system will be available from July 1, 2023, and savers will be able to divide or transfer their fixed-term deposits and use them in the stock market from November 1.

This way, the central bank aims to add more liquidity to fixed-term deposits and encourage saving in pesos.

The same day, the central bank approved the creation of a registry of platforms that small and medium enterprises can use to seek financing. The registry will include tools that support the submission of electronic credit invoices (FCEM), which allow for the financing of small and medium enterprises that supply larger companies. Platforms must register by June 1.

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