"The Financial Times" reports that the shares, bonds and currency of Argentina sharply lost on Monday after the bitter defeat of president Javier Milei's organization in the election in the largest state of the country. This is simply a serious signal before the October parliamentary elections, which will decide the future of his economical reforms.
Economic problems of Argentina
The authoritative peso course declined by nearly 4%, reaching a level of 1418 peso for the dollar, which brings it closer to the lower edge of the exchange rate band. Over the last 2 months the currency has already lost 8%.
The paper describes that the La Libertad Avanza Milei coalition won 34 percent of the vote in the state of Buenos Aires, where nearly 40 percent of the country's population lives. That's 13 percent points little than the leftist organization of the platformists. Much greater than expected, the failure points to the President's difficulties in maintaining public support for a rigorous austerity programme, crucial for abroad investors.
"The increase in unemployment, corruption scandals around the president's advisors and presidential veto for pension increases and for disabled people further undermined his position" – points out "FT".
Milei is not going to quit her reforms
Despite Milei's defeat, he announced that he did not intend to quit his free marketplace reforms and announced that they would be accelerated.
The central bank of Argentina has begun to intervene in the abroad exchange market, trying to halt further weakening of the peso, which is in line with the terms of the IMF agreement, but at the same time imposes on the country's excessive abroad exchange reserves.
Experts inform that the deficiency of a change in economical policy can lead to a further decline in investor assurance and uncontrolled currency devaluation, which will exacerbate economical slowdown and social discontent.
Milei is an economist, politician and publicist, known for his controversial, free marketplace and libertarian views. In 2023 he was elected president of Argentina, promising extremist economical reforms, limiting the function of the state and combating inflation by cutting public spending. His kind can be stormy and uncompromising, which attracts both supporters and critics. In Poland, his activities include Confederate politicians.
About who the current president of Argentina was writing more about our business service InnPoland.
