The Central Bank of Argentina decided to raise interest rates and devalue the peso. The monetary authority’s decision came a few hours after the victory of Javier Milei, a right-wing and libertarian candidate, in the country’s primaries.
You interest in Argentina they were raised from 97% to 118%, while the exchange rate went from 287 to 350 pesos per dollar.
Among the guidelines of milleivictorious in previews, is the privatization of Central bank and the ‘dollarisation’ of the country. The candidate cites freedom as a ‘motto’ in his speeches and shows closeness to ideological currents such as anarcho-capitalism and libertarianism.
It is worth mentioning that, despite Argentina’s decision to ‘table’ the exchange rate, in practice the Argentine currency trades for around 680 pesos – factoring in ‘blue dollar’ quotes and other alternative means.
Since the revision of the terms of the agreement between the International Monetary Fund (IMF) and the country’s government was announced – in mid-July – the monetary authority has successively devalued the dollar in its practices.
Furthermore high interest at 21 percentage points (pp) puts the country’s basic rate at its highest level in 20 years.
The stock market in Argentina rises after the elections
With all this scenario, the Argentine Scholarship it rises around 6.6% intraday, with the S&P Merval at over 512 thousand points.
Javier Mileiof the A Liberdade Avança party, obtained 30.06% of the vote, ahead of the two candidates of the traditional right and the government alliance, who obtained respectively 28.27% and 27.24% of the vote.
With that, there are expectations that Milei may even win the election Argentina right in the first round.
Source: Terra
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