Argentine bonds on the rise and country risk falling after Trump’s election in the USA

Argentine dollar-denominated bonds rose in early trading this Wednesday, reflecting investor optimism following the election of Donald Trump as president of the United States.

At the same time, Argentina’s country risk index experienced a significant drop, reaching its lowest level in five years, standing at just over 880 basis points.

The improvement in Argentina’s financial indicators coincides with the administration of President Javier Milei, known for his pro-market and austere policies. Milei, an economist and former TV commentator, is often compared to Trump for his direct and energetic style. Trump’s election, which took place on Tuesday, is seen as a positive factor for the continuity of economic reforms in Argentina.

In the Argentine capital, Buenos Aires, Trump’s victory is perceived as beneficial for the country’s economy. “It seems to me that they will get along well,” commented Micaela Saracero, a 29-year-old local resident, referring to Milei and Trump. “In economic terms, this could have a big impact on Argentina.”

The close ties between Milei and Trump could be crucial to Argentina’s economic future, especially considering the country’s $44 billion loan program with the International Monetary Fund (IMF).

The United States, which holds the largest voting power in the institution, will play a key role in discussions on a new program expected for next year.

However, some analysts warn of possible negative repercussions. Goldman Sachs in a recent report indicated that Trump’s victory could intensify pressure on the Argentine currency.

“Argentines haven’t realized it yet, but a Trump victory, which would mean US tariffs on China and other countries, will put enormous downward pressure on the peso,” the report explained.

This complex scenario highlights the challenges and opportunities that Argentina faces in the global economic environment, especially in terms of foreign and fiscal policy under the leadership of such dynamic figures as Milei and Trump.

With information from Reuters