The key to the elections: FX stability

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The key to the elections: FX stability

Marzo 2019

This year began better than expected for the Argentine economy but the release of January’s inflation figure in mid-February, which was higher than expected (2.9% m/m, while the market was expecting 2.5%), meant a turning point. From that moment, the exchange rate became more volatile and re-entered in the Non-Intervention Zone, country risk rebounded from 650 bps to 750 bps, while Leliqs rate increased almost 2,000 bps, from 44% to the actual 63%.