The blue dollar rises again while financial markets show a slight rebound. On the street, the exchange rate is at $1,295 compared to Friday’s $1,245, while in the stock market, The MEP dollar advances 0.5% to $1,250.93 and the CCL barely rises 0.1% to exceed $1,268. The exchange front has regained some calm after a streak of positive news for the Government.
Investors are closely watching political and economic signals that the Government can provide in the coming days to offer more certainty about Javier Milei’s administration. Although Argentine stocks listed on Wall Street are mostly operating positively, with YPF in the lead, in the local market, the Merval index falls by 0.2%.
Even though the Government achieved victory by approving the Bases Law in the Senate, legislative elections have not yet taken place, and investors will be focusing on this outcome closely when it comes to determining whether structural reforms proposed by President Milei will become a reality. Martin Polo of Cohen stated that legislative elections in 2025 would bring significant changes and make it challenging until then to implement these reforms.
The approval of an IMF staff report on Monday was received as good news in financial markets but without any indication yet regarding “cool funds” from the organization being ready to arrive at any time soon to help support President Milei’s plan to stabilize the exchange rate once and for all.
In this context, investors are closely monitoring international reserves after a drop of US$ 133 million last week. Central Bank interventions in foreign currency markets have decreased significantly due to lower agricultural liquidation or normalized payment schemes for importers reasons remain unclear as this issue is crucial for further progress towards stabilizing exchange rates and achieving long-term economic growth goals.
