Country risk has exceeded 1000 points (and is approaching another record)

Country risk in Argentina continued to rise on Monday (03/06) and reached 1,009 basis points. After hitting 985bp on Friday, the index measured by the JP Morgan bank now stands at 24 units, or 2.4%

Thus, it approaches the intraday maximum of April 25, when it reached 1,012 points, its highest level since 2014.

"In the face of the race against the dollar, which can only intensify in the following months, the loss of reserves of the Central Bank becomes worrying: the risk of not being able to face the payments of the external debt increases at the same time. systemic instability of the national economy worsens, both for what remains of the leadership of this government and for the government that begins after December 10"He said Arnaldo Bocco, Director of the External Debt Observatory (ODE), agency dependent of the Metropolitan University for Education and Labor (UMET), from the Reuters International Agency.

As, Gustavo Ber, economist of Estudio Ber, explained the reasons: "The adverse external climate amounts to conditioning the appetite for overall risk, beyond what ADR (Argentina) can react with greater relative firmness and selectivity than the hardest-hit bonds." ."

The economist added that the global context added local electoral uncertainty to a possible unification of Peronism, which would reduce the chances of the party in power.

Economists explain that this rise is produced by greater risk aversion due to international and local issues.

"At a global level, the scenario whereby capital is hiding in bonds and safe currencies has changed, because of the difficulty in anticipating the outcome of the US-China conflict and the fear of a slowdown important to global growth.The Mediterranean Foundation said in a report.

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

⚠️? [AHORA] Country risk exceeds the 1000 point mark and reaches the maximum in five years.
After a mild month of May, June begins with tensions on the external and financial front. Argentine bonds are opening the decline and the dollar is back on the uptrend with a rise of 0.5%. pic.twitter.com/2SuBxIdYI0

– Sergio Ariel Chouza (@SergioChouza) June 3, 2019

The Durar Plan has arrived here# Country Risk 1006 points

– Marcelo Trovato (@ Trovato2019) June 3, 2019

Country risk 1009 + 2,40% pic.twitter.com/WEQRlFE09S

– Pip point (@pipstoch) June 3, 2019

Country risk of more than 1000 points. If they are looking for the explanation in Argentina, they are wrong. Argentine badets are the worst in the world and the world is "risky". Soon we will see the BCRA having to defend the peso (with low chances of success) pic.twitter.com/saOivz2pa1

– Miguel A Boggiano (@Miguel_Boggiano) June 3, 2019