Argentina devalues its currency, jacks up interest rates after shock far-right primary win

Argentina’s central bank devalued its currency, the peso, by close to 18% and hiked its benchmark interest rate by a whopping 21 percentage points to 118% on Monday following a shock primary election win by far-right libertarian Javier Milei.

The moves were a bid by the government to calm markets in the wake of the Argentinian congressman’s surprise victory, which gave him the largest share of votes in the country’s presidential primary election at roughly 30%, far exceeding forecasts.

Markets had been betting on favorable results for moderate candidates. Argentina’s presidential election will be held in October.

Argentinian stocks and its sovereign dollar bonds were also lower Monday.