The current Peronist Minister of Economy, defender of the peso, Sergio Massa, won with around 36.7% of the votes, leaving Milei in second place with around 30%, far surpassing the pre-election polls, to be both the protagonists of a second return on November 19.
Massa defends the peso and Milei proposes dollarizing the economy with the elimination of the central bank (BCRA), with analysts attentive to trends facing the new political scenario. Analysts said the result should ease fears about a sudden devaluation of the peso and reduce the likelihood of the country abandoning its currency in the short term.
The bonds lost an average of 5.5% after midday in Buenos Aires, with an official peso stable at 350 per dollar and an informal currency (“blue”) in the range of 1,050 units, operators said.
The local currency in the alternative markets – where assets are sold in dollars to flee capital – showed weakened prices in the order of 1.017 through the “counted with liquidation” stock exchange, while the country risk benchmark of the JP. Morgan bank climbed 176 units, to 2,591 basis points in line with the uncertainty that plagues the third largest economy in Latin America.
“We expect Argentine assets to remain volatile ahead of the November runoff due to political uncertainty and spending driving inflation higher,” said Eirini Tsekeridou, fixed income analyst at Julius Baer.
With information from Reuters.