Definition
The BADLAR rate is the average interest rate paid by private banks on large fixed-term deposits (exceeding one million pesos). It is a key benchmark within the Argentine financial system and is widely used to price loans, financial instruments, and to assess local-currency liquidity conditions.
Analysis
The BADLAR rate exhibits episodes of marked volatility, most notably the extreme surge in 2001–2002, when it exceeded 100% per year amid a banking crisis and widespread loss of confidence. Subsequently, between 2003 and 2004, the rate fell to very low levels, in line with financial normalization.
Between 2011 and 2014, the trend turned upward again, reflecting rising inflation and increased funding needs on the part of banks. From 2018 onward, the BADLAR rate returned to elevated levels, driven by exchange rate tensions and macroeconomic deterioration.
In 2023–2024, the rate once again reached exceptionally high levels, exceeding 100% per year during the period of record inflation. From 2024 onward, a rapid decline is observed, consistent with lower nominal volatility and a financial environment characterized by reduced stress.