Argentina's Country Risk Index Hits Lowest Level Since 2018

Argentina's country risk index has dropped sharply to its lowest level since May 2018, signaling increased investor confidence. Contributing factors include a stable trade surplus, improved foreign reserves, a $1 billion loan agreement, and anticipation of a new debt deal with the IMF.

Argentina's country risk index witnessed a significant decline on Tuesday, reaching its lowest point since May 2018. According to traders, this drop reflects burgeoning investor confidence in the country's financial outlook.

The index, gauging the yield spread of Argentine bonds against U.S. debt, decreased by over 100 basis points to 454. Investors find Argentine assets more appealing as economic stability returns, influenced by President Javier Milei's strict austerity measures.

ABC informed Reuters that a persistent trade surplus, enhanced foreign reserves, a $1 billion deal with five international banks, and prospects of a new agreement with the IMF are driving this positive trend.

(With inputs from agencies.)