Hello,

We have spent much time discussing the unconventional economic policies of a populist right wing President in the US in recent months, however a contemporary in Argentina is also forging his own path.  Javier Milei became President in late 2023 on the back of an election campaign promising a libertarian economic approach. He has attempted to impose austerity and reduce bureaucracy. Whilst not universally popular by any measure, he has had some success.

 

 

He appears to have passed another test in recent weeks as the Peso confounded experts by not weakening materially following the relaxation of fixed exchange rates in mid-April. Despite wild swings, the Central Bank did not have to intervene to support the Peso last week. President Milei took to social media (certainly a trait shared with President Trump) to taunt economists who had predicted the opposite. However, with the headline interest rate currently running at 29%, there is undoubtedly more road to run in the Argentinian journey back to a conventional economic position.

 

 

As always, if you wish to discuss anything in further detail, please do get in touch.