The Minister of Economy, Luis Caputo, indicated that the Argentine financial market continues to reflect a high political risk that affects asset valuation, even after the macroeconomic progress achieved in recent months.
"The market is pricing in a political risk, the specter of a return to evil and chaos, and that's important for the market", he stated in an interview with the streaming channel Carajo.
Caputo recalled that in December the country risk was at 550 points and that, despite lifting the currency controls, recapitalizing the Central Bank with an agreement with the IMF, adding USD 5,000 million to the reserves, and sustaining the disinflation process, the indicator remains above 400 points due to political uncertainty.
Bonds, debt, and electoral context
The official warned that this perception of instability also impacts peso-denominated bonds and external debt.
Although he highlighted the improvement in fiscal accounts and reserves, he warned that the electoral period conditions market expectations, since investors not only look at economic essentials, but also at the possibility of a change of course that could alter the current balance.
