The main index that measures the performance of Argentina's most liquid shares traded on Bolsas y Mercados Argentinos (BYMA), S&P Merval, broke a record on Friday (19). The indicator registered 1,174,875 points, an increase of 3.6% in the last trading session. Since the victory of Argentina's new president, Javier Milei, at the polls, the index has soared 82.1%. The country's stock market advanced 9.73%, in 5 consecutive days.
Since taking office, libertarian Milei has adopted a series of measures to change Argentina's economic scenario. Among the measures are the attempt to approve a labor reform, which aims to make labor relations more flexible and reduce company costs. The reform, however, was temporarily suspended by the country's courts.
Forty days after taking office, Javier Milei's government also announced a reduction in spending on social assistance in Argentina. The new management decided to cut more than 27 thousand people from the list of beneficiaries after identifying irregularities in payments.
Since taking office, Milei has also decided that Argentina will not be part of the BRICS. In a letter about the decision, sent to the president of Brazil, Luiz Inácio Lula da Silva and to the other presidents of the member countries, the libertarian argued that Argentina's entry into the bloc was not “adequate”. “As you know, the brand of foreign policy of the government that I presided over a few days ago differs in many aspects from that of the previous government. In this sense, some decisions taken by the previous administration will be reviewed. Among them is the creation of a specialized unit for active participation of the country in the Brics, as indicated by former president Alberto Fernández in a letter dated September 4”, highlighted the libertarian in the letter sent to Lula.
As an immediate consequence of Milei's actions, Argentina has faced hyperinflation, which has reached 200%. This is the highest index since 1990. The Milei government's plan, however, foresees that fiscal balance will be reached this year and, thus, will put an end to the monetary issuance that Argentina has resorted to until now to finance the deficit. .
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