Argentina's Country Risk Index Falls to Lowest Since 2018

Argentina's country risk index has fallen sharply to its lowest level since May 2018, reflecting growing investor confidence in the country's financial stability. The index dropped over 100 basis points to 454, indicating a favorable view of Argentine debt compared to U.S. bonds. This decline follows a US$1-billion repurchase agreement by President Javier Milei's government with international lenders aimed at boosting foreign reserves. Additionally, JP Morgan's positive report highlights Argentina's economic recovery potential and a possible slowdown in inflation. As Argentina prepares to pay US$4.3 billion in principal and interest on foreign currency bonds, there is optimism for continued improvement in the country's financial outlook. Overall, these developments signal a significant shift in how global markets perceive Argentina's economic prospects.