The outcome of the legislative elections in the Province of Buenos Aires caused an immediate shock in the financial markets. After Fuerza Patria, the Kirchnerist coalition, was confirmed as the winner, the crypto dollar soared in a single day from $1,374 to $1,470 according to the Coinmonitor site. This jump reflects investors' fear of a possible return to economic interventionism.
The currency reaction was clear: the electoral defeat of La Libertad Avanza set off alarms in the financial market. The rise of the dollar was interpreted as a vote of no confidence in Kirchnerism, which the market identifies as a risk to macroeconomic stability. The term "Kuka risk," already established among analysts and operators, translated into a run on the dollar and an increase in volatility.
The contrast with Milei
Until the Friday before the elections, Javier Milei's government had managed to contain expectations with a relatively stable dollar and declining inflation, its most visible economic achievement in 21 months of administration. However, the election results reversed that calm.
