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ADRs rise and there is expectation with the dollar

As in the PASO on September 12, the reaction of the markets expresses the approval and expectation that investors have regarding Argentina. A triumph of the opposition was welcomed by investors, as was already confirmed in the last elections. This time, investors’ eyes will focus on the government’s next steps until 2023.

Beyond the numbers, the market awaits definitions. With the ratification of Martin Guzman and the announcement of the sending of a Law that sets the goals in the economic plane, the investors will await with attention how the government will seek to negotiate to find the minimum consensus to stabilize the economy.

The rebound in inflation and the loss of reserves as a result of uncertainty, made a Central Bank maneuver that seems to hold out until the new income from Dollars in December. The announcement of the Law that involves the entire political sphere would be a good sign taken by the markets that await concrete measures.

Political reaction played a key role. The government sought through its final speech to calm down and not get emboldened, it knew that an euphoric speech for better or for worse could harm the day after. So he sought a moderate tone and stop the storm.

What do you expect with these results? That after a clear message at the polls to the ruling party of short-term news. They recognize that the current dynamics is not sustainable in the long term and that is why solutions are needed to avoid that Argentina is complicated in terms of reserves and increased inflation. The market recognizes that further polarization after the results would only make things worse.

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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