Milei's Economic Shock Therapy Triggers 50% Collapse Of Argentine Peso, But Gains IMF Support
Portfolio Pulse from Piero Cingari
The Argentine peso has plummeted by 54% due to President Javier Milei's economic reforms, which include a drastic devaluation to tackle hyperinflation and a solvency crisis. The official exchange rate soared to 800 pesos per dollar, while the parallel market rate on Binance for the peso and Tether (USDT) is around 1,125 pesos per USD. Finance Minister Luis Caputo announced a series of austerity measures to reduce government spending and increase taxes. Argentine stocks, tracked by the Global X MSCI Argentine ETF (ARGT), dipped slightly in premarket trading but have risen nearly 20% since Milei's election. The IMF has expressed support for these reforms, which align with its recommendations.
December 13, 2023 | 3:11 pm
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NEUTRAL IMPACT
The Global X MSCI Argentine ETF (ARGT) experienced a slight 0.8% drop in premarket trading following the announcement of President Milei's economic measures, despite a nearly 20% increase since his election victory.
While ARGT experienced a slight premarket drop, the overall trend has been positive since Milei's election, indicating mixed investor sentiment. The short-term impact appears neutral as the market had already priced in some of the expected reforms, and the IMF's support may provide some confidence to investors.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80