Argentina Banks Load Up on Liquidity Before Weekend’s Election
- Lenders pile into 1-day notes to maintain maximum flexibility
- Speculation is rampant that a currency devaluation is coming
A Banco Nacion branch in Buenos Aires, Argentina.
Photographer: Anita Pouchard Serra/BloombergThis article is for subscribers only.
Argentine banks, taking nothing for granted in the run-up to this weekend’s presidential election, are loading up on the most liquid assets to ensure they could accommodate a potential surge in peso withdrawals.
No one is forecasting a run on deposits in the aftermath of the vote pitting Economy Minister Sergio Massa against libertarian Congressman Javier Milei — indeed, nothing of the sort happened after October’s first-round vote. But after being caught off guard by a jump in demand ahead of that ballot, made worse by last-minute government restrictions that left piles of cash stranded at the country’s main airport, they want to be prepared.