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.