Economy
Price Pulse
Inflation Edges Slightly Higher Amid Data Fog
10/24/2025
10/27/2025
Argentine assets rallied sharply Monday after President Javier Milei’s party scored a decisive victory in midterm elections — a result seen as critical for advancing his free-market reform agenda.
Argentina’s rally was buoyed by a $40 billion US support package — a $20 billion central bank swap line and a potential $20 billion loan facility. The White House has implied that this backing is tied to Milei’s reform agenda staying on track.
The endorsement provides credibility to the reform push and reassures investors that external support may buffer short-term volatility. It also signals that Washington sees Milei’s leadership as a viable path to macroeconomic stability.
Argentina’s market reaction wasn’t just about the election win — it was about what the win unlocked.
Together, these elements created one of the strongest single-day rallies in recent Argentine market history.
It has been a rollercoaster year for Argentine markets, with the peso down nearly 30% against the US dollar before the election.
A stronger peso could now help rebuild the depleted dollar reserves.
Milei’s government will face pressure to reform the foreign exchange regime, potentially widening the peso’s trading band or even considering a freely floating currency.