Argentina must wait to be “emerging market”: what objections did the MSCI did

Argentina must wait to be “emerging market”: what objections did the MSCI did

In its market access review, MSCI considered that Argentina, which is in the category since 2021, does not meet the minimum liquidity requirements or that its markets are partially closed to foreign investors.

The market information company MSCI He gave detail about his considerations about the Argentine economy, which remains in the category “Market Standalone “. On Tuesday 24 the entity will announce if it includes Argentina in the list of countries that will consider throughout 2025, to reclassify it from Independiente to Frontera in 2026.

In its market access review, MSCI considered that Argentina, which is in the category since 2021, does not meet the minimum liquidity requirements or what Their markets are partially closed to foreign investors.

“In April 2025, the Central Bank announced the uprising of several restrictions, allowing international investors to repatriate dividends obtained from January 1, 2025. However, however, Several restrictions are maintained for foreign institutional investors“MSCI said in his review.

In his report the qualifier said that in Argentina “There is no efficient offshore exchange market” And although he acknowledged that in April the crawling PEG was left to give way to a managed flotation regime and that some restrictions were flexible, even the MSCI continues monitoring These developments.

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MSCI questions

The report also pointed out that Financial regulations and companies are not always available in Englishwhich impacts “equal rights for foreign investors.”

Morgan Stanley also objected that in Argentina “there has been Cases of government interventions that questioned the stability of the economy of ‘free market “.

In its evaluation, he also questioned that in the Argentine market there is “a limited level of competition between corridors”, which can make transactions more expensive, which in operations outside the market are allowed, but with restrictions.

For the qualifier there is An imitated availability of investment instruments, by virtue of the restrictions imposed on the use of stock market data.

Repercussions: what does the City of this decision think

Ignacio SniechowskiHead of Research of IEB Groupfrom its social networks, this decision echoed: “Everything remains the same according to the MSCI accessibility report. It accounts for improvements. As we expected EEMM totally discarded. At most to go to an “under-revision”.

Then he made a small desk. Given the restrictions on capital flow, he stressed that the MSCI recognizes advances, but there are severe restrictions for institutional investors. Regarding exchange restrictions, he explained that the entity will continue to monitor.

And finally, about the stability of the institutional framework, the expert stressed that “it does not account for a substantial improvement since the last report.”

Source: Ambito

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