Pesification reaches credit cards
Buenos Aires, August 15, 2012
Restrictions against the dollar reached the credit card. While people can continue shopping in the U.S. currency, but when a person pays the minimum fee, the fund balance is not in dollars but in pesos at the official exchange rate and a higher interest.
Today the interest rate exceeds 40% per year when the peso is revolving, and is located at 19% annually when it is in dollars. But if the latter is applied to the rate of devaluation of the exchange rate (the last year was 10% and today is about 17%), the cost of dollar funding that is (converted into dollars) amounts to a range between 30% and 37% annually. That is, significantly lower.
The measure has already been communicated to all by the Attendant Visa card, to be applied from October.
However, three of the big banks have begun to use it, while the other predicts that in less than two months will start.
The mechanism does not require the consent of the customer because it will apply automatically.