The S&P Merval, the country's main Stock Exchange index, reached 1.174 billion points, the highest level in history
The S&P Merval, the main index on the Argentine Stock Exchange, broke a record on Friday (19 January 2024). Rose 1,174,875 points, with an increase of 3.6% in the last trading session. The index soared 82.1% since the victory of the country's president, Javier Milei, at the polls.
The country's stock market has been on a continuous rise for 5 days in a row. It advanced 9.73% in this period. Argentina reached an agreement with the IMF (International Monetary Fund) to renegotiate its debt – read more about the agreement here. The measure was a victory for Milei and will require ambitious actions to meet fiscal targets.
The blue dollar – which is the parallel exchange rate free from State interference – went to 1,195 Argentine pesos. It rose 29.2% since the 2nd round of elections in the country. It was at 924.9 Argentine pesos the day before the election.
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The parallel exchange rate for the real increased to 242.2 Argentine pesos. Before the elections, R$1 was equivalent to 189.5 Argentine pesos.
Milei adopted changes in the official exchange rate, which was frozen during the previous government and caused distortions between the real value of the currency and that practiced in the country. To reduce asymmetries, he increased the value of the dollar from 366 pesos to 800 pesos in the first days of government.
The value continues to rise, but in a more controlled manner than the blue dollar. It rose to 819.8 Argentine pesos, an increase of 131.6% compared to the 2nd round of the elections.
The effect was similar for the official exchange rate of the real. The Brazilian currency is worth 166.2 Argentine pesos in the country. Purchases in dollars or reais at the official exchange rate are almost out of use. There is no foreign currency available for operations in this modality.
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