Merval Extends Retreat From All-Time Highs
2025-02-17 14:48
By
Felipe Alarcon
1 min. read
Argentina's Merval index traded below the 2,310,000 level, extending the downturn since the beginning of 2025 after reaching an all-time high of 2,829,000 on January 9, as investor confidence has been deeply shaken by President Javier Milei’s controversial promotion of the cryptocurrency $LIBRA, which quickly collapsed after a classic “rug pull” scam unfolded and triggered over 100 lawsuits.
Major stocks have taken a hit, with BBAR dropping more than 10%, Grupo Financiero Galicia falling 9%, and Edenor declining 8%, while local dollar bonds have tumbled over 4%, reflecting widespread risk aversion.
The scandal has intensified concerns about political instability and economic uncertainty in Argentina, as the crypto debacle adds to existing apprehensions about governance and regulatory oversight.
The episode has cast a long shadow over market sentiment, prompting fears that the country’s fragile fiscal environment could deter foreign investment until stability is restored.