Jorge Otaola: Argentina Loses a Third of its Dollar Deposits!

Argentine banks have seen a third of their US dollar deposits withdrawn since November, as savers chase greenbacks in response to stiffening foreign exchange restrictions, local banking sources said n Friday. Depositors withdrew a total of about $100 million per day over the last month in a safe-haven bid fueled by uncertainty over policies that might be adopted as pressure grows to keep US currency in the country. The chase for dollars is motivated by fear that the government may further toughen its clamp down on access to the US currency, as high inflation and lack of faith in government policy erode the local peso. "Deposits keep going down," said one foreign exchange broker who asked not to be named. "There is a disparity among banks, but in total it's about $80 million to $120 million per day." US dollar deposits of Argentina banks fell 11.2 percent in the preceding three weeks to $11.5 billion, according to central bank data released on Friday. The run on the greenback has waxed and waned since November, after President Cristina Fernandez won a second term on promises of deepening the state's role in the economy. From May 11 until Friday, data compiled by Reuters from private banks showed $1.9 billion in US currency had been withdrawn, or about 15 percent of all greenbacks deposited in the country. Feisty populist leader Fernandez was re-elected in October, vowing to "deepen the model" of the interventionist policies associated with her predecessor, Nestor Kirchner, who is also her late husband. Since then she has limited imports, imposed capital controls and seized a majority stake in top energy company YPF.