The markets reacted negatively today to the "Libra affair," where President Javier Milei promoted an obscure token that resulted in millions of losses for those who invested. S&P Merval shares plunged by up to 8.1%, one of the largest declines in a year, and dollar bonds dropped by up to 3.3%. It was the first reaction to the scandal involving the cryptocurrency $Libra that President Milei promoted last Friday.
Meanwhile, the Central Bank concluded its participation in the official exchange market with a net sale of US$ 15 million, marking the first negative balance since January 29. In this context, gross international reserves fell by about US$ 53 million, down to US$ 28.745 billion. The loss of foreign currency occurred amid a turbulent market atmosphere following the questionable decision to promote an insecure cryptocurrency called $LIBRA on social media.
Without the reference of Wall Street, which was closed for a holiday in the US (President's Day), the leading index of BYMA fell by 5.6% to 2,254,188 units, while in dollar terms it plummeted by 6.6% to 1,866 points. The shares of the leading panel collapsed with declines led by Loma Negra (-8.1%); Central Puerto (-7.4%); Grupo Supervielle (-7.4%); Transener (-7.1%); and Comercial del Plata (-7.1%). No increases were recorded in the leading index.
Already since the weekend, traders were preparing for a negative day due to the political scandal involving the president for promoting an unknown cryptocurrency, which could escalate with the formal request for impeachment and even a complaint to the FBI. Analysts predict greater volatility in the assets as the facts become clearer. However, they also anticipate that this scandal will hinder negotiations in the Senate during this crucial week to determine what will happen with the suspension of the PASO.
Facing the mid-term elections, if the political weakness persists, negotiations regarding the party lists could also be affected. In local quotes, dollar bonds are down by up to 3.5%, with declines led by Global 2038, Global 2046 (-3.4%), and Global 2041 (-3.1%). The country risk closed on Friday at 675 points and remained at that level this Monday. The local market operates normally, although there is also no liquidation of operations in Dollar Cable (CCL).
