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Banks in Buenos Aires reopened after the recent presidential election without any issues or rush of withdrawals, contrary to some analysts' expectations. However, financial markets are still factoring in the risks associated with Javier Milei's plans, as evidenced by the low rollover rate of debt instruments offered by the central bank. Despite this, local stocks and dollar bonds rallied as investors bet on Milei's radical economic fixes. Milei has sought to calm markets by promising to meet debt obligations and dispelling fears about governability. While Milei's proposal to replace the peso with the US dollar has gained support, the specific steps and timeline for the transition remain unclear. The nation's currency controls and import restrictions have created multiple exchange rates, and a disorderly transition could lead to hyperinflation and undermine Milei's economic overhaul plans. Bank executives are concerned about potential chaos if there is a wave of cash withdrawals, but major devaluation of the official exchange rate is not expected in the coming days. The central bank plans to take measures to ease pressure on the exchange rate gap during the transition period. Proponents of Milei's plan argue that much of the country is already dollarized to some extent. Confidence in the local currency is low, and the idea of formally switching to the US dollar may not be as radical as it seems. [Extracted from the article]

The cash withdrawal came even as funding conditions tightened sharply in recent days due to month-end demand induced by tax payments and large government bond sales, with a trader reporting a surge to as high as 50% by the overnight rate in isolated transactions Tuesday. (Bloomberg) -- China's central bank withdrew cash from the financial system, suggesting it sees Tuesday's abrupt surge in short-term borrowing costs as a temporary disruption. [Extracted from the article]

Read more: Return of ECB 0% Deposit Cap Would Shake Money Market, BofA Says The rate on German two-year notes fell as much as six basis points to 2.95% after the Bundesbank said late Friday it will remunerate domestic government deposits at 0% starting Oct. 1. In September, Europe's governments rushed to lower their cash holdings held at the central bank on the expectation interest would be capped at 0% even as the ECB raised its deposit rate above that level. [Extracted from the article]

Read more: Return of ECB 0% Deposit Cap Would Shake Money Market, BofA Says "The Bundesbank is taking no prisoners", said Commerzbank analysts including Michael Leister. In September, Europe's governments rushed to lower their cash holdings held at the central bank on the expectation interest would be capped at 0% even as the ECB raised its deposit rate above that level. (Bloomberg) -- Short-term German bonds rallied after the nation's central bank said it would stop paying interest on domestic government deposits, a move that could spur billions of euros of flows into higher-yielding securities The rate on two-year notes fell as much as six basis points to 2.95% after the Bundesbank said late Friday it will remunerate domestic government deposits at 0% starting Oct. 1. [Extracted from the article]

(Bloomberg) -- Short-term German bonds rallied after the nation's central bank said it would stop paying interest on domestic government deposits again. Last September, Europe's governments rushed to lower their cash holdings held at the central bank on the expectation interest would be capped at 0% even as the ECB raised its deposit rate above that level. [Extracted from the article]

Chile is one of the few Latin American economies expected to contract this year, with an average estimate of a 0.1% decline for gross domestic product, according to data compiled by Bloomberg. (Bloomberg) -- Chile's economic activity fell more than expected in May from the previous year as the central bank prepares to cut interest rates. [Extracted from the article]

Chile's central bank targets inflation of 3%. (Bloomberg) -- Chile's annual inflation slowed more than forecast in May on falling transportation costs, stoking bets that the central bank will lower its interest rate from an over two-decade high as soon as next month. [Extracted from the article]

(Bloomberg) -- The Reserve Bank of India intensified its operations to remove cash from the banking system, showing it wants to keep liquidity tight to rein in inflation. The central bank's efforts to remove short-term funds from the system comes amid a jump in excess banking cash after the withdrawal of high-value banking notes and a dividend payout by the RBI to the government. [Extracted from the article]

(Bloomberg) -- The Reserve Bank of India intensified its operations to remove cash from the banking system, showing it wants to keep liquidity tight to rein in inflation. The central bank said Tuesday it will drain 750 billion rupees ($9.1 billion) from the banking system via a reverse repo auction. [Extracted from the article]

Many people in Turkey rely on cash withdrawals from credit cards to survive amid the country's worst-cost-of-living crisis in two decades. (Bloomberg) -- Turkey's central bank reversed a rule intended to limit demand for cash and gold, after facing a backlash from citizens ahead of a presidential runoff election on May 28. [Extracted from the article]

(Bloomberg) -- Chile's annual inflation eased back to single digits for the first time since March 2022, offering some relief to policymakers as they hold the benchmark interest rate at the highest in over two decades. Read more: Chile's Costa Dismisses Early Rate Cuts, Even as Inflation Slows What Bloomberg Economics Says The result brings significant relief, but we believe policymakers may prefer to wait for further data to start cutting rates. [Extracted from the article]

(Bloomberg) -- Chile's central bank President Rosanna Costa is pushing back against bets that policymakers will start a series of steep interest rate cuts in April. Still, the central bank chief said it's crucial that Chile's overall public policies contribute to efforts against inflation. [Extracted from the article]

Costa, who has been a central bank board member since 2017, has herself been increasingly outspoken regarding consumer price risks. (Bloomberg) -- Chile's central bank President Rosanna Costa is pushing back against bets that policymakers will start a series of steep interest rate cuts in April. [Extracted from the article]

In total, about 20 bank branches across Denmark have cash holdings, according to Finance Denmark. (Bloomberg) -- Bank robberies are becoming a thing of the past in cashless Denmark as the Nordic country recorded its first year of zero holdups in 2022. [Extracted from the article]

The withdrawal of the central bank from the covered bond market was 'a game changer' which has shaped 2023 into a potential second year of record issuance. But can the virtuous circle brought on by higher spreads and yields last? Atanas Dinov investigates [ABSTRACT FROM AUTHOR]

The Central Bank of Ireland has revealed, in an internal report, that the demand for cash withdrawals at ATMs had remained largely steady. Average monthly withdrawals were $1.47 billion per month between January 2015 and February 2020. [ABSTRACT FROM AUTHOR]

(Bloomberg) -- Chile's central bank raised its key interest rate more than expected by economists, increasing borrowing costs by 125 basis points in an effort to bring torrid consumer prices and inflation forecasts back to target. Chile's rate hike comes after both the U.S. Federal Reserve and Brazil's central bank raised their respective interest rates on Wednesday. [Extracted from the article]

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. Here's the latest news and analysis from Bloomberg Economics to help you start the day: Federal Reserve Bank of St. Louis President James Bullard said the central bank needs to move quickly to raise interest rates to around 3.5% this year with multiple half-point hikes and that it shouldn't rule out rate increases of 75 basis points World Bank Chief Economist Carmen Reinhart said the global economy is passing through a period of "exceptional uncertainty" and added that she wouldn't rule out further downgrades to the growth outlook The Washington-based institution has lowered its estimate for global growth in 2022 to 3.2% from a January prediction of 4.1%, spurred by a cut in the outlook for Europe and central Asia that includes Russia and Ukraine The International Monetary Fund will release its own World Economic Outlook at 9 a.m. Eastern time on Tuesday Brazil's central bank is in for a longer-than-expected battle against inflation as its own workers, together with others from the country's public and private sectors, demand wage increases of as much as 26% to make up for losses in purchasing power Meanwhile, economist Robin Brooks has become a social media sensation in Brazil for his bullish calls on the real Chile's lower house rejected dueling proposals for a new round of pension fund withdrawals, adding more drama in what has been a thorny political issue early in President Gabriel Boric's government Japan's stepped-up verbal defense of the yen failed to stem another sharp slide in the currency Tuesday as the currency breached the 128 mark against the dollar after speeding past 127 earlier in the day Investors aren't buying the Chinese government's bullish rhetoric and promises of support for an economy paying the price for its stringent Covid Zero strategy ©2022 Bloomberg L.P. [Extracted from the article]

Read More: Chilean Consumer Prices Surprise Again as Economy Booms The economy expanded about 12% in 2021, the fastest pace yet for the South American nation, according to central bank estimates published last month. (Bloomberg) -- Chile's central bank delivered its biggest interest rate hike in more than 20 years, signaling renewed urgency to drag soaring inflation back down to target. [Extracted from the article]

Read More: Chilean Consumer Prices Surprise Again as Economy Booms The economy expanded about 12% in 2021, the fastest pace yet for the South American nation, according to central bank estimates published last month. (Bloomberg) -- Chile's central bank surprised economists with a bigger-than-expected increase to its key interest rate, signaling renewed urgency to drag soaring inflation back down to target. [Extracted from the article]

(Bloomberg) -- Chile's central bank will likely deliver its third straight interest rate hike of 125 basis points, lifting borrowing costs to their highest in a decade after a streak of consumer price surprises propelled inflation further above target. What Bloomberg Economics Says "We expect Chile's central bank to maintain the tightening pace from previous meetings and raise its benchmark rate by 125 basis points to 5.25% on Wednesday. Chile's central bank is aggressively boosting rates to combat inflation. [Extracted from the article]

(Bloomberg) -- Chile's President-elect Gabriel Boricpicked current central bank head Mario Marcel as financeminister, redoubling efforts to assure investors that hisleftist government will follow a fiscally responsiblepath. Marcel is a critic of early pension withdrawals that aredespised by markets, and has defended the bank's autonomyas Chile drafts a new constitution. [Extracted from the article]

Considering that inflation expectations were more stable in December and also that a rapid deceleration in activity is expected in 2022, the additional rate increases will likely be smaller. Chile's central bank raised its inflation forecasts for this year and next, hours after it lifted the key interest rate for the fourth straight meeting amid the fastest economic growth on record. [Extracted from the article]

Above Neutral Given the string of inflation surprises, investors expect the central bank to present guidance on how much above the neutral level, which neither stimulates nor restricts the economy, borrowing costs will rise next year. Chile's inflation has topped forecasts for five months in a row, hurting the central bank's credibility even after it delivered in October the biggest rate hike in two decades. [Extracted from the article]

Chile's inflation has topped forecasts for five months in a row, hurting the central bank's credibility even after it delivered in October the biggest rate hike in two decades. Above Neutral Given the string of inflation surprises, investors expect the central bank to present guidance on how much above the neutral level, which neither stimulates nor restricts the economy, borrowing costs will rise next year. [Extracted from the article]

(Bloomberg) -- Chile's economic activity rose for the fifth straight month, as billions of dollars in stimulus measures propel the recovery of one of the region's richest nations. Chile's economy is one of the fastest growing in the world, with demand propelled by government cash transfers and also early pension fund withdrawals. [Extracted from the article]

(Bloomberg) -- Chile's central bank will likely speed up the pace of interest rate increases as inflation soars and lawmakers weigh even more stimulus for one of the world's fastest growing economies. Indeed, the central bank would benefit from further "front-loading" borrowing cost hikes, according to a note from Goldman Sachs Group Inc. economists including Alberto Ramos. [Extracted from the article]

Aggressive withdrawal of central bank support set to reprice sovereign and covered bonds in 2023 [ABSTRACT FROM AUTHOR]

Chile's economic activity rose more than expected in June due to broad-based gains, signaling that families and businesses rode out fresh lockdowns caused by a coronavirus surge. Keywords: BUSINESS; COS; GEN; GLOBALMACR; GOV; LATAM; MARKETS; POL; WORLD EN BUSINESS COS GEN GLOBALMACR GOV LATAM MARKETS POL WORLD Chile's economic activity rose more than expected in June due to broad-based gains, signaling that families and businesses rode out fresh lockdowns caused by a coronavirus surge. [Extracted from the article]

QSZZEKDWLU6N (Bloomberg) -- Chile's central bank held its benchmark interest rate at a record low as the nation slowly beats back its worst coronavirus surge to date. Keywords: ALLTOP; BASIC; BON; BUSINESS; CMD; COS; FRX; GEN; GLOBALMACR; GOV; INDUSTRIES; LATAM; LATTOP; MARKETS; METMNG; POL; TOP; WORLD EN ALLTOP BASIC BON BUSINESS CMD COS FRX GEN GLOBALMACR GOV INDUSTRIES LATAM LATTOP MARKETS METMNG POL TOP WORLD Chile's central bank held its benchmark interest rate at a record low as the nation slowly beats back its worst coronavirus surge to date. [Extracted from the article]

Keywords: ALLTOP; BASIC; BON; BUSINESS; CMD; COS; FRX; GEN; GOV; INDUSTRIES; LATAM; LATTOP; MARKETS; METMNG; POL; TOP; WORLD EN ALLTOP BASIC BON BUSINESS CMD COS FRX GEN GOV INDUSTRIES LATAM LATTOP MARKETS METMNG POL TOP WORLD Chile's central bank held its benchmark interest rate at a record low as the nation slowly beats back its worst coronavirus surge to date. QT2FSMDWX2PX (Bloomberg) -- Chile's central bank held its benchmark interest rate at a record low as the nation slowly beats back its worst coronavirus surge to date. [Extracted from the article]

(Bloomberg) -- The Central Bank of Myanmar is limiting cash withdrawals from banks and automated teller machines a month after the country's military coup. May Toe Win, director general of the Central Bank of Myanmar's foreign exchange management department, confirmed late Sunday that the letter sent to all banks in the Southeast Asian country was authentic. [Extracted from the article]

(Bloomberg) -- Bank Audi SAL received several expressions of interest to buy its Egyptian unit, according to an official from the bank. Bank Audi operates about 50 branches in Egypt and 88 outlets in Lebanon. [Extracted from the article]

The Central Bank of Ireland has increased its monitoring of the U.K. investment market as it prepares for Brexit, the Financial Times reported. The bank asked fund investment companies to immediately notify it of any large-scale mutual fund withdrawals, the FT reports, citing a confidential request sent in December. [Extracted from the article]

Norway increased withdrawals from the nation's wealth fund again in March, running ahead of estimates made by the central bank just two months ago. At the faster pace, full-year withdrawals would top an estimate of 80 billion kroner given in February by the central bank governor, who oversees the $860 billion fund. [Extracted from the article]

To contact the reporter on this story: Ben Bain in Mexico City at bbain2@bloomberg.net Investors have poured a net $56.9 million into the iShares MSCI Mexico Capped ETF since July 3, compared with outflows of $641.6 million for global funds excluding the U.S. Brazil ETFs had an inflow of $5.2 million, while China-focused funds posted withdrawals of $56.9 million during the same span. Mexican funds had posted the second-biggest outflow among emerging markets in the first half of 2015 as the government and central bank cut economic growth forecasts. [Extracted from the article]