President Javier Milei faces legal complaints and calls for impeachment amid what has been dubbed the "Libra Affair." This Monday, markets will be watching closely to assess whether this incident will have any repercussions on the economy, as there will be no trading on Wall Street due to the Presidents' Day holiday in the United States. In the Buenos Aires stock market, operators' reactions are expected to be observed after a weekend of high political tension.
Milei's failed recommendation regarding the Libra token, which experienced a brief uptick followed by a drop, resulted in losses for certain investors and raised questions about possible consequences in the financial markets. There are doubts about whether the potential impeachment initiative against him will affect investors' decisions or if factors such as the deceleration of inflation in January and the slight recovery of wages will be more decisive.
Additionally, negotiations with the International Monetary Fund for a new agreement are being closely monitored. Milei is expected to present his stance on a political program this Monday after admitting that the recommendation was made without a deep understanding of the project. Meanwhile, creators of the Libra token are estimated to have gained $70 million in a short period, and transactions exceeded $2 billion.
Despite the scandal, operators indicate that no impact is foreseen on local financial assets, as the gains or losses from the digital asset Libra were limited to private investors. The incident occurred before Milei traveled to the U.S. to attend a conservative meeting where Donald Trump would be present. The government hopes that strong economic indicators will be key to quickly overcoming this unforced error and leaving the controversy behind.
