by Jorge Barnfather, Consultant, Latina Finance & Co
Over the last few years, Argentina has witnessed a significant evolution and strengthening of its domestic financial system, and particularly a modernisation of its cash management environment. This evolution has been made possible thanks to the combined efforts of both public organisations, such as the central bank, and the private sector including significant investment made by banks.
Despite this, for those companies, transactions with individuals and SMEs, cash is still king, as a large proportion of these deals are actually cash settled. With a population exceeding 40 million, the number of current accounts in the whole system as of December 31 2009 amounted to 3.3 million, indicating that efforts towards motivating the population to operate banking accounts have not been entirely successful.
Over the last few years Argentina has witnessed a significant evolution and strengthening of its domestic financial system.