Circular REMON 1 - 971: Minimum Cash Adjustments

2019 - YEAR OF EXPORT

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A” 6706
30/05/2019

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
REMON 1 - 971

Minimum cash. Adjustments.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, provides:

“1. Incorporate, with effect from 1.6.19, as point 1.1.2.8. in the rules on “Minimum cash” the following:

“1.1.2.8. Obligations with merchants for sales made in a single payment through the use of credit and/or purchase cards.”

2. Replace, with effect from 1.6.19, points 1.3.7.1., 1.3.13. and 1.3.15. and subsections a) and b) of point 1.3.14. of the rules on “Minimum cash” with the following:

“1.3.7.1. In pesos. According to their residual term.

i) Up to 29 days.	32	13
ii) From 30 to 59 days.	25	10
iii) From 60 to 89 days.	7	5
iv) From 90 days or more.	0	0”

“1.3.13. In the case of operations in pesos, when the locality in which the operating office where they are made is located, in accordance with the provisions of the rules on “Categorization of localities for financial institutions”, belongs to categories II to VI, the rates provided for demand placements shall be reduced by 2 percentage points and for term placements by 1 percentage point up to a minimum of zero (including point 1.3.11.). In both cases, it does not include deposits in securities. Term deposits in pesos arranged remotely (e.g. by “homebanking”, web fixed term, etc.) shall receive the same treatment as those captured in categories II to VI.”

“a) 5 percentage points of the rates provided in points 1.3.1., 1.3.2.1., 1.3.3. and 1.3.9. and in subsections i) and ii) of points 1.3.5.1. and 1.3.7.1.

b) 2 percentage points of the rates provided in subsection iii) of points 1.3.5.1. and 1.3.7.1.”

“1.3.15. Financial institutions included in Group “A” and the branches or subsidiaries of G-SIBs not included in that group may integrate the requirement in pesos –of the period and daily– with BCRA Liquidity Bills (LELIQ) and/or BCRA Notes (NOBAC) in up to 13 percentage points of the rate provided in subsection i) of point 1.3.5.1. and 1.3.9.; in up to 10 percentage points of the rates provided by points 1.3.1., 1.3.2.1. and 1.3.3. and by subsections ii) of point 1.3.5.1. and i) and ii) of point 1.3.7.1.”

Likewise, we inform you that we will subsequently send you the sheets that, in replacement of those opportunely provided, shall be incorporated in the rules of reference.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

Agustín Torcassi
General Deputy Manager of Financial Regulation