Argentines Pulled $1 Billion From Bank Accounts in April Rush
- Deposits fell 6.7% to $15.3 billion late March to end-April
- Peso weakened 13% in April in parallel market amid 100% CPI
A Banco Hipotecario bank branch in the financial district of Buenos Aires, Argentina.
Photographer: Sarah Pabst/BloombergArgentines withdrew over $1 billion of US dollar deposits from the banking system from late March to the end of April as speculation spread about a potential currency devaluation in the official exchange rate.
Dollar deposits dropped from nearly $16.4 billion on March 20 to just below $15.3 billion by the end of April, a 6.7% decline, according to central bank data released Friday. In Argentina, checking accounts are denominated in pesos but savings accounts can be denominated in US dollars, a reality after decades of currency crises and runaway inflation.