Argentina’s country risk index reached a low in almost eight years, falling below 500 basis points this Tuesday (27), which paves the way for the country to return to international credit markets.
Argentina broke the 550 point barrier observed in previous periods by reaching 499 basis points this week.
The factors that supported Argentine performance were the systematic purchase of dollars by the Central Bank of the Argentine Republic (BCRA), the appreciation of sovereign bonds and the political and economic conduct of President Javier Milei in the last two years.
This month alone, the Argentine monetary authority added US$1 billion in dollar purchases, taking gross international reserves to reach US$45.7 billion.
The fall in country risk generated positive effects for the Buenos Aires Stock Exchange, which rose 2.7%, and for Argentine shares traded in New York.
When Milei assumed the presidency, in 2023, the index related to the country was approximately 1,400 points higher.
The index prepared by JP Morgan measures the difference between the yields on Argentine bonds and those on the US Treasury. With the fall in this difference, the confidence of foreign investors increases and facilitates new funding for the country.
