Moody's campaigns fear for Macri and get scared before Cristina Kirchner's triumph

The rating agency said the dollar appreciated because savers feared they could not get them out of the bank if the former president was elected.

April 9, 2019

The economic consultant Moody & # 39; s tries to generate fear in front of the big investors about the alleged consequences of the triumph of Cristina Kirchner. The rating agency says that Unidad Ciudadana could prevent people from taking their dollars to the bank.

"To the extent that we do not know who will win, and among the options, there is someone who wants to make a radical change, the political risk will be high," said Gabriel Torres, head of credit at Moody & # 39; s. "Volatility will not go away this year," he added.

After a brief calm, instability returned to the market due to political uncertainty and persistent negative economic data. Given this, the country risk peaked in the year on Monday.

"I do not know what will be proposed (Roberto) Lavagna or Cristina if they are candidates, I want to see it because until now they were not clear," Torres said. in an interview with Reuters.To the extent that people are afraid of a "trap" and can not withdraw their money from the bank, they will want to buy dollars", He mentioned, mentioning the control of the exchange rate applied by the Kirchner in 2011 to put an end to the currency leak.

Currently, Moody's estimates that the Argentine economy will shrink by 1.5% this year, with inflation of 35%. Torres said that if candidates agreed to pursue tax cuts, the economy would improve.

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