Political uncertainty ahead of Argentina's presidential election in October has increased the peso's instability on foreign exchange markets as well as country risk, according to Economy Minister Nicolas Dujovne. He said markets were reacting to uncertainty rather than necessarily seeking a policy change. "The market is not going to change its behavior because we are talking about an election, but it will react if there is no clear path forward," he said. President Mauricio Macri's government has launched initiatives such as a price freeze for consumer goods and utility services to stem inflation, as well as support for the currency to stabilise the exchange rate.
Political uncertainty ahead of Argentina's presidential election in October has increased the peso's instability on foreign exchange markets as well as country risk, according to Economy Minister Nicolas Dujovne. He said markets were reacting to uncertainty rather than necessarily seeking a policy change. Argentina's currency and stock markets are both falling, the JPMorgan risk indicator is at its highest since 2014, and inflation has reached 54.7%. President Mauricio Macri's government has launched initiatives such as a price freeze for consumer goods and utility services to stem inflation, as well as support for the currency to stabilise the exchange rate.