Argentina foibles (inflation, currency and potential anarcho-capitalist experiments)

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The use of stablecoins surged in Argentina over the weekend​

Stablecoin use skyrocketed in Argentina over the weekend as citizens concerned about the election results swapped hoards of pesos for U.S. dollar-backed stablecoins. Facundo Werning, the former Tether expansion manager for Argentina, noted the volume across the USD stablecoin to Argentine peso trading pair reached $13.4 million on Sunday.

Argentine finance professional Santiago Vivanco reportedly claimed that he did not know anyone who had carried large amounts of Argentine pesos into the election. He added that he expected the peso to crash if Unión por la Patria had won, emphasizing that the party’s left-wing economic policies would not favor the peso. The chance that Unión por la Patria would win the most seats peaked at 55% on Polymarket.

More:

https://www.msn.com/en-us/money/mar...over-the-weekend/ar-AA1PjKqR?ocid=socialshare
 
Milei's win gave him (his party) additional seats in the legislature and it appears as if he will now be able to pass a lot of the reforms that he has been trying to pass since day 1 but which the old legislature had been blocking.
 
Bloomberg

Buoyed by Trump, Argentina Takes Aim at $16 Billion US Judgment​

The government of Argentine President Javier Milei is hoping its string of recent political and economic victories continues in a Manhattan courtroom as it seeks to overturn a $16 billion US court judgment against the South American nation.

Lawyers for Argentina will make oral arguments Wednesday in the country’s appeal of a New York federal judge’s 2023 award to former shareholders in oil company YPF SA who were affected by its nationalization more than a decade earlier. For years, the litigation, like a previous court battle over Argentina’s sovereign debt, seemed to symbolize the country’s perceived antipathy toward foreign capital.

More:
https://www.msn.com/en-us/money/mar...lion-us-judgment/ar-AA1PpVJ9?ocid=socialshare
 

U.S. Banks Shelve $20 Billion Bailout Plan for Argentina​

A planned $20 billion bailout to Argentina from JPMorgan Chase, Bank of America and Citigroup has been shelved as bankers pivot instead to a smaller, short-term loan package to support the financially distressed government, people familiar with the matter said.

Treasury Secretary Scott Bessent and the Trump administration had been seeking to bolster Argentine President Javier Milei’s pro-reform party when they announced a pair of financial lifelines this fall. The package included a $20 billion currency swap with the U.S. Treasury Department and plans for a separate $20 billion bank-led debt facility.

More:

https://www.msn.com/en-us/money/mar...an-for-argentina/ar-AA1QQm4b?ocid=socialshare
 
lol. At least the rumor helped Milei get reelected.
 

Two Years of Milei: The Reform Agenda Moves Forward in Argentina​

Today marks two years since Javier Milei took office as president of Argentina. Since December 10, 2023, the first self-described libertarian to ever rise to power began to liberalize Argentina’s economy. Unsurprisingly for other libertarians, Milei’s policies have started to reverse the country’s long-standing decline.

More:

 

Court hands Argentina’s Milei a victory, rejecting $16 billion verdict​

A U.S. federal appeals court ruled Friday that Argentina doesn’t have to pay shareholders $16 billion for its takeover of the country’s biggest oil company, handing President Javier Milei a victory that will help his free-market overhaul.

Milei’s cash-strapped government would have struggled to pay the judgment as it undertakes a painful austerity program to overhaul Argentina’s economy. The ruling allows the Milei government to continue building its reserves of U.S. dollars, which is crucial to stabilize the economy and attract investments.

“We won the YPF lawsuit,” said Milei, a close ally of the Trump administration, on X. He called the ruling “historic, unthinkable, the greatest legal achievement in national history.”

More:

https://www.msn.com/en-us/money/mar...-billion-verdict/ar-AA1Zy9fL?ocid=socialshare
 
Seems odd. I wonder what the plaintiffs argued and what the court's reasoning was.
 
^^^

Stay the F out of debt.

It's that simple. Debt is danger; and Milei represents a sea-change in risk...
 
President Javier Milei's push to restrict the Central Bank from printing money to finance Argentina's Treasury is on track after lawmakers in the lower house backed his bid to reform the institution's charter.

On Wednesday evening, the Chamber of Deputies approved a bill to reform the Central Bank's charter with 144 votes in favour, 102 against and 9 abstentions.

The ball now moves into the Senate's court, where Milei's government does not have a majority and where La Libertad Avanza and its allies face the tougher task of finding the numbers to turn one of the President’s central economic pledges into law.
...
The Milei administration wants to prevent the Central Bank from financing the Treasury through money printing, which can put upward pressure on prices. Specifically, it would ban transitory advances to the Treasury, loans to the provinces and the use of non-transferable bonds, while limiting the transfer of the Central Bank's profits to earnings it has actually realised.
...
The bill states that the Central Bank's "primary and fundamental mission" is to preserve the value of the currency. Economist Martín Kalos told the AFP news agency that this essentially means "trying to ensure there isn't much inflation.”

If it passes the Senate, the reform would also remove the Central Bank's objectives of promoting employment and equitable economic development, which were introduced under former president Cristina Fernández de Kirchner. It would also strip it of powers to direct credit towards specific sectors of the economy.
...
Click to expand...

batimes.com.ar

Deputies back Milei’s push to reform Central Bank charter

Louse house lawmakers back Milei's bid to bar the Central Bank from printing money to fund the Treasury, bill now moves to Senate; Opposition deputies brand reform a "scam" designed to entrench Governor Santiago Bausili.
batimes.com.ar batimes.com.ar

 
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