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© Reuters. FILE PHOTO: Argentina’s President Javier Milei addresses supporters from the Casa Rosada balcony, as his sister Karina Milei and his partner Fatima Florez look on, after his swearing-in ceremony, in Buenos Aires, Argentina December 10, 2023. REUTERS/Agust
By Lucinda Elliott and Jorge Otaola
Market participants responded with caution on Thursday to an emergency presidential decree issued by Argentina, ending export limits and other steps to deregulate the economy. Argentine sovereign debt rose, while stocks dipped after early gains.
Protests erupted against sweeping austerity measures, demanding financial support for the poor. Thousands took to the streets in cities such as Rosario, Mar del Plata, Córdoba, and Buenos Aires, banging pots and pans in protest for a second day.
Although the complex decree has been cautiously welcomed, it faces potential legislative challenges that could block its proposals. The government’s ability to meet debt obligations has impacted bond spreads, as well as investor perceptions of Argentina’s economic trajectory.
Argentine President Javier Milei described the measures as “unfriendly” but necessary to address macroeconomic imbalances. The country is currently facing recession, triple-digit annual inflation, and a growing poverty rate.
The government plans to settle a $900 million payment to the International Monetary Fund (IMF) using a bridge loan approved on Dec. 15.
Earlier on Wednesday,