Javier Milei, the newly elected president of Argentina, faces significant challenges in implementing his proposed reforms due to uncertain outcomes and political maneuvering. According to Jaime Reusche, Vice President – Senior Credit Officer de Moody’s Investors Service, the consensus necessary for reforms is critical as well as governance issues that could hinder Milei’s ability to implement corrective policies. Meanwhile, JP Morgan focused on the risks of implementing the measures announced by Javier Milei during the campaign and warned that governance risks loom given the lack of party structure and power distribution in Congress. The bank predicted a realignment of the anticipated exchange rate with a level consistent with the parallel exchange rate to allow capital controls to be gradually removed upon taking office. Barclays also focused on governance issues and warned that social front would be a significant challenge for Milei as he tries to maintain support from middle-income sectors through economic stabilization and recovery.
- Wed. Dec 6th, 2023
