The Buenos Aires Stock Exchange opened this Tuesday up 20%, a day after a holiday that followed the victory of the ultra-liberal and anti-system Javier Milei against the outgoing Economy Minister Sergio Massa in the Argentine presidential elections on Sunday.
Published on: November 21, 2023 – 6:42 p.m
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Argentina’s main stock index had not seen such a rise at the opening in more than 30 years. Shares of Argentine companies, particularly banks, rose again at the start of the day on the New York Stock Exchange after rising sharply on Monday.
It is the state oil company YPF that recorded the strongest increase on Monday in both Buenos Aires and New York, +40%. Javier Milei confirmed that he would privatize it: “Everything that can get into the hands of the private sector will go to the private sector,” he said.
Milei’s promises were received positively by the markets
Enough to please the financial markets, which also view the future president’s promises to cut public spending with a chainsaw positively. Argentina is heavily indebted and some feared the country would default.
But the euphoria might not last. If Javier Milei were to suddenly take very radical measures, such as a sudden switch to the dollar or the abolition of social welfare, this could destabilize the country’s economy and lead to severe social tensions. However, since Javier Milei does not have a majority in parliament, it may be difficult for him to implement some of the reforms promised during the election campaign.
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