Argentina: ADRs Drop 8% as Country Risk Nears 900
After Wednesday’s rebound, driven by Donald Trump’s pause on key tariffs, Argentine assets turned red again along with the New York Stock Exchange.
Markets in the U.S. tumbled on Thursday despite the previous day’s gains, following Trump’s announcement suspending certain tariffs. Wall Street’s main indexes fell as much as 4.3%, dragging down regional markets.
In this context, Argentine ADRs dropped by as much as 8%, reversing the previous day’s optimism. Top losers included YPF (-7.8%), Edenor (-6.9%), and Loma Negra (-6.7%). Outside ADRs, shares of Vista and Globant sank up to 8.1%.
Meanwhile, the S&P Merval index fell 3.3% to 2,111,490.16 points. Leading decliners were Transportadora de Gas del Sur (-9.6%), Grupo Supervielle (-5.8%), and Metrogas (-5.6%).
Bonds and Country Risk
Dollar-denominated bonds also suffered, with Bonar 2029 plunging 3.6%. Global 2035 and Bonar 2041 followed, falling 3% and 2% respectively.
As a result, Argentina’s country risk index, measured by J.P. Morgan, climbed 1.1% to 899 basis points.
Central Bank Extends China Swap Agreement
As Argentina finalizes the details of a new deal with the IMF, the Central Bank (BCRA) announced Thursday that it has agreed with its Chinese counterpart to renew the full activated tranche of the bilateral currency swap—worth 35 billion renminbi (around USD 5 billion)—for an additional 12 months. The move is expected to help shore up the country’s dwindling international reserves.
The activation of this swap tranche with the People’s Bank of China (PBOC), which began in 2023 and was originally set to start winding down in June 2025, will now remain fully available to the BCRA until mid-2026, the Argentine monetary authority said in a statement.
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