Argentina’s peso exhibited a notable appreciation on Thursday following the announcement by authorities regarding an increase in reserve requirements for banks. This move is aimed at bolstering the currency in the wake of a significant local debt auction that did not meet market expectations. The central bank has raised reserve requirements by five percentage points … Read more
President Javier Milei’s economic programme is fundamentally anchored in the expectation that Argentina will significantly enhance its export capacity in the years ahead. However, projections tend to perform more effectively in theory than in practice. It is not uncommon for a nation, such as Argentina, to focus solely on its internal affairs, seemingly oblivious to … Read more
Argentina’s local debt auction on Wednesday did not meet market expectations, as President Javier Milei’s administration managed to roll over only 61 percent of maturities in a crucial auction. Analysts suggest that this outcome may lead to a depreciation of the peso. The Treasury executed a rollover of 9.1 trillion pesos from the 15 trillion … Read more
A sharp rise in borrowing costs comes as the government prepares for a peso debt auction Wednesday to roll over US$17.4 billion in maturities, or a third of the economy’s money. On Monday, yields on the Argentine government’s short-term notes reached unprecedented levels, occurring merely two days prior to an auction by the Treasury that … Read more
The International Monetary Fund (IMF) has announced that it has reached a staff-level agreement with the Argentine government regarding the first review of the program established in April. The lender’s board is scheduled to convene in late July to provide final approval for the review, a decision that would facilitate a US$2 billion disbursement. Just … Read more
The International Monetary Fund plans to engage in discussions regarding the initial review of Argentina’s US$20-billion programme during an informal meeting between its staff and executive board on Tuesday, as reported by a source with knowledge of the situation. The meeting is anticipated to occur in Washington on Tuesday morning, according to an individual who … Read more
On Thursday, Moody’s elevated Argentina’s long-term debt rating by two notches, moving it from Caa3 to Caa1. However, it continues to reside within the speculative category, as indicated by the risk rating agency’s statement. The agency referenced macroeconomic reforms that have contributed to a reduction in inflation and a resurgence in growth as the basis … Read more
The rise in credit card defaults observed in Argentina during April, which persisted through May and June, raises concerns regarding sustained consumer spending in the forthcoming months and may also have implications for the financial sector’s market performance. The consulting firm Labor, Capital and Growth (LCG) highlights in its latest report that the issue, as … Read more
Buenos Aires Province’s debt increases as Milei faces a challenge in the local elections. Investors are acquiring debt from Argentina’s largest province, anticipating that President Javier Milei’s political party will maintain its winning momentum in an upcoming local election in under three months. Dollar notes issued by Buenos Aires Province have emerged as the top-performing government credits … Read more
Argentina finds itself in a familiar situation as it secures yet another loan from the International Monetary Fund, reminiscent of past financial cycles. For generations, Argentines have perceived their nation as ensnared in a persistent cycle, as yet another loan from the International Monetary Fund is set to arrive to stabilize its fluctuating economy. This marks the … Read more