What is it, how is it measured and why is it increasing?

The country risk measured by the JP Morgan bank exceeded a thousand basis points, causing great concern among economists, savers and entrepreneurs. What is the country risk? Why is it so important?

Country risk is a danger index of a defect (non-payment of debt) issue of securities that the bank measures JP Morgan. It measures the interest rate premium that a country pays compared to the one paid by the United States, today at 2.11%.

That is to say, if today Argentina wanted to get into the bond market, would pay 12.2% per annum in rate dollars.

The variable is used by countries to make decisions regarding the development of foreign trade, multinationals and international banking operations.

For Argentina, country risk data is essential as it is used to pay interest on the debt.