The financial market reacted to the victory of the ultra-liberal Javier Milei in the Argentine presidential elections, where he won 56% of the votes over his challenger Sergio Massa. Thus, There has been an increase in the country’s most liquid foreign bonds.
Debt maturing in 2035 increased 0.6 cents per dollar, while that of 2041 increased 0.8 cents per dollar, positioning them among the 20 best-performing bonds in emerging markets of the day.
Although this Monday, the Argentine markets will remain closed for a national holiday, in the previous opening of Wall Street, companies from that country listed in New York shot up by up to 24%.
However, it is expected that in the currency market everything indicates that the Argentine peso will weaken in parallel markets.
“The peso is likely to remain under significant pressure,” said Leandro Galli, emerging markets debt portfolio manager at JP Morgan Asset Management.
It should be noted that Argentina’s economy is going through its sixth recession in a decade, with a 1.6% drop this year, poverty exceeds 40% while inflation stands at 142% year-on-year.
In this context, Milei proposes a sudden change in Argentina, which is heading into unknown territory. “Today the reconstruction of Argentina begins, today is the beginning of the end of Argentina’s decline. The impoverishing model of the omnipresent State ends. Today we once again embrace the ideas of freedom, those of our founding fathers,” were the candidate’s words after learning of his victory.
Source: Larepublica
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