Argentina’s Markets Face Political Crosswinds

Argentina’s stock index fell by about two percent after a brief rise, showing that traders are uneasy amid recent political moves. The country’s lawmakers are debating a new labor law pushed by President Javier Milei, which could change how workers and companies interact. At the same time, authorities have introduced rules that let people bring hidden U. S. dollars into banks without proving where the money came from. These “mattress dollars” could be worth around $170 billion, and the plan would allow transactions under 100 million pesos to move freely.The central bank is buying dollars, adding $317 million last week and keeping the peso steady at 1, 432 per dollar. Bond prices edged up slightly in local markets, but the overall market still trails its 2023 highs by about three percent in dollar terms. Experts say the uneven recovery of different sectors and slow reform implementation are hurting performance. The new dollar‑inclusion scheme is not a tax amnesty; it simply offers a way to formalise some undeclared cash up to roughly $65, 000. Investors are watching both the Senate debate and the dollar‑policy shift closely to decide where to put their money next.