earlyretirement
Moderator
🇦🇷🚀Argentina's financial conditions have improved significantly, reaching their best level since 2018, according to the Argentine Institute of Finance Executives (IAEF).
This improvement is due to several key factors:
✅Impact of their Tax Amnesty (Money Laundering Program)
The money laundering program has had a positive effect on the Argentine economy:
Over $21 Billion entered the financial system.
This has improved investor confidence in the country's debt repayment capacity.
✅Central Bank (BCRA) Interest Rate Cuts
The BCRA has implemented a series of interest rate reductions:
☑️The monetary policy rate was reduced from 35% to 32% APR.
☑️The interest rate on active repos decreased from 40% to 36%.
☑️These measures aim to boost private credit and reflect confidence in consolidating lower inflation.
Argentina is experiencing a notable deceleration in inflation:
📉The Consumer Price Index (CPI) showed a downward trend, with monthly inflation below 3% in October and November.
📈For 2024, annual inflation is projected at 118.9%, significantly lower than in previous years
This disinflationary process has generated greater confidence in financial markets.
🚀The S&P Merval, the main stock index, has risen 122% this year so far
🚀Bank stocks have seen significant gains, with increases of up to 279% in dollar terms.
🚀Sovereign bonds have reached historical highs, reflecting greater investor confidence.
These combined factors have led to a substantial improvement in Argentina's financial conditions, placing them at their best moment since 2018. The consolidation of these positive trends will be crucial to maintaining and further improving the country's economic outlook in the near future.
This improvement is due to several key factors:
✅Impact of their Tax Amnesty (Money Laundering Program)
The money laundering program has had a positive effect on the Argentine economy:
Over $21 Billion entered the financial system.
This has improved investor confidence in the country's debt repayment capacity.
✅Central Bank (BCRA) Interest Rate Cuts
The BCRA has implemented a series of interest rate reductions:
☑️The monetary policy rate was reduced from 35% to 32% APR.
☑️The interest rate on active repos decreased from 40% to 36%.
☑️These measures aim to boost private credit and reflect confidence in consolidating lower inflation.
Argentina is experiencing a notable deceleration in inflation:
📉The Consumer Price Index (CPI) showed a downward trend, with monthly inflation below 3% in October and November.
📈For 2024, annual inflation is projected at 118.9%, significantly lower than in previous years
This disinflationary process has generated greater confidence in financial markets.
🚀The S&P Merval, the main stock index, has risen 122% this year so far
🚀Bank stocks have seen significant gains, with increases of up to 279% in dollar terms.
🚀Sovereign bonds have reached historical highs, reflecting greater investor confidence.
These combined factors have led to a substantial improvement in Argentina's financial conditions, placing them at their best moment since 2018. The consolidation of these positive trends will be crucial to maintaining and further improving the country's economic outlook in the near future.
