The “crypto-gate” undermined investor confidence, deteriorated the image of the president and increased pressures in financial and exchange markets.
The Wall Street reopening After the holiday President’s Day will expose the magnitude of the impact generated by the “crypto-gate ” The day in the Buenos Aires bag evidenced that the losses exceed the initial forecasts, increasing uncertainty among investors, who now look suspiciously to the figure of the figure of the President Javier Milei.
Already at this time, before the opening of the market on Wall Street, the shares of Grupo Financiero Galicia Ceden -4%; Macro Bank Cut -4.1%, Gas Transporter del Sur CEDE -4.3%and Mercado Libre sinks -13%. On the other hand, bonds nominated in dollars also mark negative note with casualties up to 0.3%.
In the midst of this environment of instability, some analysts propose that “salvation” is to accelerate the negotiation of the agreement with the International Monetary Fundsince it is considered that it could inject the necessary confidence to get the crisis. However, the Minister of Economy, Luis CaputoHe said that conversations with the agency are still firm and will not be compromised by recent events.
The deterioration in the local markets was palpable: both the shares and the bonds showed a bearish trend that was exacerbated after the stir for the token $ Libra. This scenario, added to the loss of prestige that is now recognized in presidential leadership – who until recently enjoyed an image of “Rockstar” in the international sphere – prepares a difficult way to recover market confidence.
Market attention
Today, attention focuses on the behavior of Wall Street, where strong decreases are anticipated in Argentine assets and an increase in country risk. In addition, Milei’s imminent trip to the United States is glimpsed as a crucial evidence for the president, who hopes to take the opportunity to reverse negative perception and possibly establish a dialogue with senior US officials, in a context where even figures such as Donald Trump They have shown some support in social networks.
Milei speech at Wall Street
For his part, Milei has tried to distance himself from the episode. In statements to TN, he explained: “My intention was to promote a project that facilitated access to financing for SMEs; I got carried away by enthusiasm. ” Meanwhile, the pressure in the exchange market continues to increase: the dollar in the parallel market reached $ 1,235, while official types exceeded $ 1,200, with average increases of 1.5%, which could lead to the central bank to Intensify your interventions to avoid a greater gap in the exchange rate.
Source: Ambito
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