This is the ECOSUR Foundation, which described 2024 as “an exceptional year for Argentine assets” and highlighted the potential of the exchange rate.
Bonds, foreign currencies, bills and fixed terms: investment alternatives in 2024 They promoted positive returns for all types of savers. However, the valuation of the last semester of the exchange rate and monetary policy determined benefits in less chosen options in the past.
The report belonging to the ECOSUR Foundation, a merger of the Córdoba Stock Exchange and the consulting firm MindY-Economics, considers that “2024 was an exceptional year for Argentine assets, with outstanding returns in pesos and dollars” and carried out its analysis based on the performance that a potential investor would currently have if they had allocated a sum of US$1,000 in December 2023.
In this framework, the most profitable investment of the year was the CER fixed term: A saver who chose this alternative with US$1,000 in December 2023 reached US$2,433. Subsequently, investments continue in the Merval (US$2,281); sovereign bonds in dollars under national law (US$2,109) and US law (US$2,049); and the fixed term in pesos (US$1,458). Finally, the list of possibilities closes Negotiable Obligations (US$1,105) and the US dollars (US$1,009).
Financial Times analysis of monetary policy
In a note published by the prestigious media Financial TimesThe scope of finances was also evaluated in light of the appreciation of the national peso. In that framework, the wages registered averages almost doubled in dollars during the year, reaching $990 in October 2024. This allowed the middle class to access imported goods at lower prices and plan trips abroad more easily, generating a perception of economic stability.
This scenario also had a positive impact on the exchange gapwhich was significantly reduced from 200% in December 2023 at less than 20% by the end of 2024. Policies such as allowing exporters to settle part of their income in the parallel market helped build confidence in the government’s monetary scheme.
However, The benefits of a strong weight are not without significant costs. The increase in the price of Argentine products in dollars affects the competitiveness of key export sectors. According to the FT, companies like Ternium have warned that labor costs in Argentina are a 60% higher than those of Brazil, which harms the country’s ability to compete in international markets.
Furthermore, the depreciation of the Brazilian real, Argentina’s main trading partner, adds pressure to this dynamic. According to Ramiro Blázquez, head of research at BancTrust, if the peso continues to appreciate or if a significant external shock arisessuch as a rapid devaluation of the real or the increase in tariffs in the United States under the administration of Donald Trump, could increase the demand for cheap dollars and with it the risk of a sudden devaluation.
Source: Ambito
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