Author: Ignacio Teson

Without Wall Street as a reference—closed for Presidents’ Day in the U.S.—Argentina’s leading index fell 4.2%.

The S&P Merval index tumbled as much as 7.3%, while dollar-denominated bonds fell up to 3.1% on Monday, February 17, as the market reacted to the controversy surrounding the $LIBRA cryptocurrency, which President Javier Milei promoted last Friday.

With Wall Street closed for Presidents’ Day, Argentina’s leading BYMA index dropped 4.2% to 2,286,163.76 points. Measured in dollars, it plummeted 4.8% to 1,896 points.

Among the biggest losers in the leading panel were Comercial del Plata (-7.3%), Loma Negra (-7%), and Grupo Supervielle (-5.5%). No stocks in the index registered gains.

Market operators had already braced for a negative session over the weekend, as the political scandal involving Milei’s endorsement of an obscure cryptocurrency intensified. The situation could escalate further with a formal request for impeachment proceedings.
Dollar-Denominated Bonds

In the local market, dollar bonds fell up to 3.1%, led by Bonar 2041, followed by Bonar 2030 and Global 2035, both down 3%, while Bonar 2038 dropped 2.6%.

With no trading in Wall Street on Monday, Argentina’s country risk closed Friday at 675 points. While the local market remains operational, no settlements will take place for Dólar Cable (CCL) transactions.

Context of the Scandal

The controversy erupted after President Javier Milei promoted a cryptocurrency supposedly aimed at financing projects in Argentina. However, just hours later—following a sharp drop in its value after an initial surge driven by Milei’s post—the president clarified on X that he was “not fully informed about the details of the project” and that “after learning more, I decided to stop promoting it.”

As a result, Milei deleted his original post and denied any involvement with the project he had initially endorsed. He did confirm, however, that the project itself was “real.” Amid the backlash, the Office of the President released a statement acknowledging that Milei had met with the company behind the cryptocurrency in October.

However, they clarified that Hayden Mark Davis, who was said to provide the project’s technological infrastructure, “never had and does not have any ties to the Argentine government.”