Argentina Optimistic About Libertarian Javier Milei’s Resounding Election Win
Argentina’s stock market opened with optimism on Tuesday, after libertarian Javier Milei’s resounding election win on Monday. Milesi, a 53-year-old economist, was elected in a landslide victory, with voters punishing the government for decades of economic decline.
The Latin America’s third-biggest economy is currently facing an annual inflation rate of 143%, leading to uncertainty over what kind of changes the self-proclaimed “anarcho-capitalist” will bring.
On Tuesday, the day after the election, the stock market opened with a 20% surge before eventually settling to a 14% increase. The peso, which is strictly regulated, rose slightly to 1,050 pesos to the dollar on the informal “blue dollar” exchange rate.
Milei has promised to scrap multiple government departments while also campaigning with a chainsaw. Among his more controversial proposals is the scrapping of the peso for the US dollar and the shutdown of the central bank, which he has accused of using money printing to finance government overspending.
In his first interviews after the election, Milei said that it could take up to two years to tame inflation and laid out his plans to reform the state. He emphasized the need to put as much as possible in the hands of the private sector, such as the state oil company YPF and state media, among other private entities.
The rise on Argentina’s stock market was led by the state oil company YPF, whose shares rose by 34% as a result of Milei’s remarks. On Wall Street, YPF shares rose 40% at the end of trading day Monday.
Milei had his first meeting with outgoing president Alberto Fernandez to discuss the transition process ahead of his inauguration on December 10.
Despite the uncertainty surrounding the Argentine economy, the nation is still hopeful for Milei’s election win, with the stock market’s surge as a testament to this optimism. While his proposals are quite radical, if implemented, they could potentially help lift the country out of its current economic turmoil.
