Wall Street Banks Heading to Argentina to Meet with Government Officials
The ruling party’s defeat in Congress and market uncertainty due to the fall of its first law have led several main Wall Street banks to embark on a trip to Argentina. The visit will be led by representatives from Barclays, Bank of America, Citigroup, Goldman Sachs, and HSBC along with a group of clients (mostly investment funds) to meet with government officials, including Executive officials, the Ministry of Economy, and the Central Bank.
Investors are interested in Javier Milei’s program, the prospects of the bonds and possible investments. With Milei’s rise to power and her promises to advance a shock plan, dollar titles rose up to 14%, but last week they fell to almost 7% after the setback suffered by the omnibus law and the war unleashed with governors.
The visit is within the framework of visits that are organized every year to different countries in the region. However, some Wall Street sources maintain that there is interest in rediscovering Argentina. BlackRock bought last week US$ 1.8 million of the Bopreal dollar bond with which the government seeks to regularize commercial debt. In recent days, major US banks issued cautionary signals about Argentina. JP Morgan estimated double-digit inflation until Q1 and a discrete jump in official dollars in June and warned that “the lack of support from Congress suggests that The administration should recalculate its political strategy.”