Latin America

Why Brazil should pay attention to the Argentinian election

Why Brazil should pay attention to the Argentina election

As Argentina’s October presidential election approaches, the country has entered the pre-electoral panic so common to life in emerging countries. Since Monday, Argentinian assets are selling fast.

Argentina’s 5-year Credit Default Swap (an index measuring a country’s risk of defaulting on its debt) is the highest in the world—as the chance of default rose over 60 percent. The Argentinian Peso has plummeted over the past 16 months; benchmark interest rates have spiked to 71 percent, and inflation reached 4.7 percent in March alone—more than Brazil’s target for the entire year.