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The open, simultaneous and compulsory primaries of last Sunday were a poison for the fragile economy of Argentina. As all parties presented only one candidate, the elections became a major national poll that hit President Mauricio Macri harshly. Rid of the power, he will have to defeat in the generals of October 27 a defeat of more than 15 points before the Peronist Alberto Fernández, the new strongman of Argentina. The definite possibility of a return of Kirchnerism plunged the country into a serious economic crisis that made Saturday its first direct victim, the Minister of Finance, Nicolás Dujovne. The peso lost between Friday and last Wednesday up to 30% of its value, the stock market fell and inflation soared. This is the timeline of a week of vertigo.
Black day after the vote. On Monday 12, the markets severely punish Argentina. The peso is changed to 55 units per dollar, 10 more than the previous Friday, debt bonds fall 20 points and the stock market plummets 38%. Macri supports black Monday the 11.6 million people who voted for Fernandez. "It's a sample of what will happen" if Kirchner wins, threatens. He refuses to talk to the winner.
There is no truce for the peso on Tuesday 13th. The price of the dollar against the national currency goes from 55 to 58 units. Country risk, the differential that pays Argentina's debt to the United States, is dangerously close to 2,000 points. Politicians of all colors, businessmen and unions ask Macri to agree with Fernández on an exit from the political blockade. There are signs of shortages and wholesalers are suspending sales because "they have no price to sell".
Relief measures On Wednesday, at the opening of the markets, the price of the dollar climbs to 63 pesos. Food producers are advancing price increases of up to 15%. Macri is urgently launching an economic relief program for the middle clbad, which has turned its back on the urn. The government cuts the income tax, grants additional payments to officials, postpones tax debts and freezes the price of gasoline. In the afternoon, Macri calls Fernandez. The opposition leader agrees to defend stability: "The dollar at 60 pesos is fine."
Deletion of VAT. The peso stabilizes to 59 units per dollar. On Thursday, Macri brought together 1,000 senior government officials and told them that he was still in the running. In another gesture towards the electorate, it reduces VAT on staple foods.
The market is calm.Friday, the markets give a truce. The peso is valued at 57 units per dollar, country risk falls and the stock market rises. Fernández limits his appearances in the press, but regrets that the fall of the VAT hits the governors, the main beneficiaries of the tax. Rumors of changes in the Cabinet are multiplying. The candidate for vice president of Macri, Peronist Miguel Ángel Pichetto, denies that his name sounds like a new head of minister.
The first political victim. Saturday, the Minister of Finance, Nicolás Dujovne, resigns "convinced that in these circumstances, the (government) leadership needs a significant revival in the economic field," he said in a letter addressed in Macri. He is replaced by Hernán Lacunza, Minister of the Economy of the Province of Buenos Aires. Without markets, we will have to wait until Tuesday (this Sunday is a holiday in the country) to see the magnitude of the first week of crisis.
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