Country risk has risen again and has exceeded 1000 points

The indicator prepared by JP Morgan Bank reached 1,014 basis points, its highest level since the beginning of 2014.

What does it mean that country risk increases?

Country risk is the excessive rate that a country has to pay above what US bonds pay to make its bonds attractive. The less confidence markets have in the country's economy and in its ability to pay, the higher the country risk.

Why is country risk in Argentina increasing?

It increases according to various factors, both local and external.

"At the global level, capital cities are hiding in bonds and safe currencies because of the difficulty of anticipating the outcome of the US-China conflict and the fear of a significant slowdown in global growth."explained the Foundation for the Mediterranean in a report.

He added that "at the local level, we are witnessing a deterioration of the international situation, but especially of greater uncertainty for the day after December 10 (when the elected president takes office)".

At the national level, the economic crisis, the worsening recession, the uncertainty surrounding the repayment of Argentina's bonds from next year, as well as the evolution of the political scenario into an election year completely overwhelm the investor confidence in Argentine newspapers.