Argentine markets are set for another bout of nerves after the country holds a presidential election on Sunday, likely to confirm defeat for business-friendly President Mauricio Macri.
Another volatile week with still many uncertainties begins this Monday for Argentina even when some of the latest measures adopted by the administration of President Mauricio Macri helped to calm markets, debilitating apocalyptic forecasts.
Argentine markets ended the week on a high after capital controls helped arrest a sharp plunge in the peso currency and local bond prices, but investors said the outlook remained shaky amid swirling political and financial uncertainty.
Argentine assets have tumbled so far, so fast that a few stout-hearted investors say it might be time to buy. “Find me a high-yield sovereign country with an IMF program paying so generously,” said Jean-Dominique Butikofer, the Atlanta-based head of emerging-market fixed income at Voya Investment Management, which oversees about US$ 205 billion.
Argentine bonds and the country’s embattled peso currency fell for a second day on Thursday, cranking up the challenge facing President Mauricio Macri as his drop in the polls ahead of knife-edge elections later this year unnerves investors.
The resignation of Luis Caputo to the Presidency of the Central Bank of Argentina (BCRA), which has been reflected with surprise by the international media, occurs amid the trip of the Argentine President, Mauricio Macri, to New York to attend the Assembly General of the UN and with the mission of restoring the confidence of the international market in the Argentine economy. His predecessor, Guido Sandleris, receives a Central Bank when it is about to close an agreement with the International Monetary Fund (IMF).