Argentina's markets, which soared after President Javier Milei took office a month ago, are now giving the libertarian leader a dose of reality, with bond prices slipping, the peso weakening again and investors wary of the government's new debt auctions. The splash of cold water from investors after an initial honeymoon underscores the huge challenge facing Milei as he looks to tamp down inflation heading towards 200%, head off social unrest, rebuild depleted reserves and rescue a $44 billion program with the International Monetary Fund (IMF). He also faces push-back to his 'omnibus' reform bill aiming to privatize state entities and raising taxes in Congress, where his libertarian coalition is well short of a majority.
Milei, a political outsider who took office in mid-December on the back of voter anger at the political elite, directed an over 50% devaluation of the embattled, artificially strong peso currency that remains held in check by capital controls
Argentina s markets,
which soared after President Javier Milei took office a month
ago, are now giving the libertarian leader a dose of reality,
with bond prices slipping, the peso weakening again.