In recent weeks, Argentina has experienced a seemingly cleared currency front, leading to expectations in the financial district for a significant drop in country risk that could allow a swift return to debt markets this year. However, the JP Morgan indicator, which had previously reached an eight-year low at the end of January, surpassed 520 points again this month. Neither the Central Bank's purchases nor the government's reformist agenda have managed to reduce the country risk significantly.

On Friday, following the news of the 'half sanction' of the Labor Reform Law in the Chamber of Deputies, dollar-denominated bonds showed minor improvements, and country risk dropped by three points to settle at 519. Nonetheless, this indicator has worsened by more than 4% in February, indicating some respite after the strong compression experienced since the government’s victory in the legislative elections last October. Global context, although more volatile, continues to play a role in these dynamics.

The persistence of high country risk signals underlying economic challenges in Argentina and raises concerns about the efficacy of governmental measures to stabilize the economy and regain investor confidence. As these developments unfold, the impacts will be closely monitored by both local and international financial entities, highlighting the fragile state of Argentina’s economic environment and the critical importance of substantive reforms.