In a new sign of market support for the economic course of the Government, Argentina's country risk plunged more than 3% this Wednesday, December 17, and stood at 555 basis points, the lowest level in more than seven years. To find a similar reading, it is necessary to go back to July 31, 2018, when the indicator had closed at 556 units.
The index, prepared by JP Morgan bank, is posting its second consecutive decline, driven by the positive reaction of investors to the recent announcements by the Central Bank, in particular the new modality of adjustment of the exchange rate bands and the program for purchasing and accumulating reserves. So far in December, the indicator has already fallen by 90 points, a significant correction that reinforces the shift in expectations under the current administration.
The drop was publicly celebrated by members of the economic team. "Ladies and gentlemen, we are at the lowest levels of country risk since August 2018", emphasized Felipe Núñez, adviser to the Economy Minister, through his account on the social network X.
The decline in country risk coincided with a new rise in sovereign bonds in dollars, which this Wednesday posted gains of more than 1%. Nevertheless, market participants pointed out that there are still challenges ahead. "All bonds under foreign law offer single-digit yields, with country risk in the area of 550 points, the minimum of Milei's administration. Despite the optimism, it remains to be defined how the upcoming January maturities will be met", warned Milo Farro, analyst at Rava Bursátil.
