• Mon. May 27th, 2024

Boost in Deposit Coverage for Upcoming Weekend: Central Bank Announces Increase in Insurance Limits

BySamantha Jones

Mar 28, 2024
Central Bank increases maximum deposit guarantee due to inflation

In preparation for the upcoming XXL weekend, the Central Bank held a meeting to update the guarantee limits for bank deposits. During this meeting, the board of directors decided to increase deposit coverage for pesos up to $50 million and foreign currency up to US$100,000. This adjustment was made official in Communication A 7985 and is primarily a response to inflation.

The deposit guarantee insurance is applied per depositor and per entity, protecting bank deposits, savings accounts, and checking accounts in case a bank closes or changes ownership. The insurance system was established in Law 24,485 and regulated in April 1995 by decree 540. Sedesa, a company owned by the Central Bank and financial entities, provides this insurance.

Financial institutions contribute to the Deposit Guarantee Fund based on their capital they receive with the goal of having enough funds to respond to any risks for depositors. As of March 21, the fund balance was $3,344,653,160,951. This insurance covers deposits in current accounts, demand accounts, savings accounts, fixed terms, salary accounts

By Samantha Jones

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