The unexpectedly strong showing came after the U.S. pledged a combined $40 billion to support Milei- a $20 billion central bank swap line and a potential $20 billion loan facility – and implied the backing was contingent on Milei’s reform agenda.
Argentina’s assets have been on a rollercoaster ride since Milei’s party suffered a wider-than-expected defeat in a provincial vote in Buenos Aires last month. The peso had weakened some 25 per cent since mid-April’s partial scrapping of foreign exchange controls, and close to 30 per cent since the start of the year.
It strengthened more than 10 per cent to the dollar in the week after U.S. Treasury Secretary Scott Bessent announced U.S. support for the Argentine economy in late September, but has since weakened again. On Friday, it touched a record closing low of 1,491.50 per dollar.
Argentina’s international dollar bonds are among the worst-performing emerging market high-yielders this year, down nearly 10 per cent year-to-date. They returned more than 100 per cent to investors last year.
The local stock benchmark last month touched its lowest in a year. While it has since risen more than 20 per cent, it is down nearly 30 per cent from a record high set in January.Now, the stronger position for Milei’s party in the legislature will encourage more investment, investors have said, as electoral risk recedes. It also boosts hopes for reform-minded candidates even in the next general ballot in 2027.
FAQs
Q1. Who is Argentina President?
A1. Argentina President is Javier Milei.
Q2. What is currency of Argentina?
A2. The currency of Argentina is Peso.
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