During the extended holiday period, Argentine assets are experiencing a sharp decline in the United States. The country risk has escalated to 1,410 basis points, as measured by JP Morgan on a daily basis. This indicator reflects the excess cost of Argentine debt compared to the yield of the United States Treasury. Just two months ago, the country risk had dropped to 1,148 basis points, the lowest level seen during Javier Milei’s management.
The rise in country risk is a result of a new fall in Argentine bonds, which are currently dropping between 0.3% and 0.5%. On the stock side, amidst minor falls in the Dow Jones, ADRs are all showing losses. Banks are particularly affected, with Banco Galicia experiencing drops of up to 4%, followed by Supervielle at 3.9% and Macro and BBVA at 3.2%.
The crypto dollar remains stable at $1,300, the same price at which the blue closed last Wednesday. Argentine assets had shown signs of recovery after the approval of the Base Law by the Senate two weeks ago. However, recent days have seen slight declines in bonds and an average drop of 10% in stocks in the month of June.
Investors are concerned about the Central Bank’s struggle to accumulate reserves, with only $25 million in purchases added so far in June. Exporters are dissatisfied with the current exchange rate, leading to lower supply, while demand for imports is increasing. This disruption in the recovery process of Argentine assets comes after significant increases following the change of government, with some assets seeing up to 100% growth.