The value of sovereign dollar bonds and shares of Argentine companies listed on the stock exchange in USA, grew on November 20 against the backdrop of the victory in the presidential election of libertarian Javier Miley, who threatens to abandon the national currency, close the Central Bank and sharply reduce government spending. About it writes Bloomberg.
Bonds maturing in 2041 jumped 1.9 cents to 30 cents, their biggest intraday gain since January, while shares in state oil company YPF SA rose in pre-market trading in New York by 17 percent.
Opponent of entry Argentina V BRICSfar-right politician Javier Miley from the opposition libertarian coalition “Freedom Comes” won in the second round of the presidential election, gaining more than 55 percent of the vote. As part of the election campaign, he also promised to introduce direct circulation of the US dollar in Latin America’s second largest economy, as well as to reduce government spending by 15 percent, which is why the politician was nicknamed the “economist with a chainsaw.”
In light of the political changes, experts interviewed by the agency see the potential for Argentina to “start over again” as well as put in place a “potentially more draconian fiscal consolidation and reform plan” that could provide some support for the country’s dollar bonds.
Currently, 40 percent of Argentina’s population lives in poverty, and the country is on the verge of its sixth recession in the last decade. Argentina also suffers from high inflation, which exceeds 140 percent. Miley himself, celebrating his victory in the elections of the head of state, statedthat the country needs radical changes, noting that there is no place for indecision and half-measures.https://musicnewsfirst.com/