Thursday , October 28 2021

Argentina's risk continues to escalate, reaching its highest level in a decade



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According to Reuters, the metric provided by JPMorgan has reached its highest level in 10 years.

This commitment is witnessed by the deepening of the collapse experienced by the Argentine markets yesterday on the other side of the mountain range. And that is, the country's risk has reached its highest level in ten years, as the country's mistrust of the market continues after Sunday's primary elections, which return Kyrgyzstan to Casa Rosada.

According to Reuters, the indicator provided by JPMorgan exceeds 1,700 points a day, a situation not given since April 2009

For its part, the dollar will continue to be a headache for the Argentines. And that is, the coin split the day, deepening its fall, reaching over 60 pesos. Of course, the new interventions of the Central Bank of the Argentine Republic have resulted in an exchange rate of 58 pesos.

But in the market, they are more extreme with what will come out for the Argentine currency. The investment bank BofA has issued a report projecting the exchange rate of 70 pesos by the end of this year and 106.6 by the end of 2020.

"Lower demand for the peso and a weaker exchange rate are likely to put pressure on inflation, which will further hurt the exchange rate," the US bank said according to a Bloomberg report.

Yesterday, on the first day of the post-election market operation that gave Alberto Fernandez the biggest winner over current President Macri, chaos took over Argentina's financial assets. An example of this is that Merval – the main indicator of the neighboring country's stock market – lost almost 38%, while the Argentine peso lost almost 17% of its value against the dollar.

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