He Country risk Argentina I registered that Wednesday December 17the a pronounced volatility, reaching an intraday minimum of 555 basis pointsthe lowest value in more than seven years. According to information from Rava ExchangeThe index operated with an opening level of 561 units and a high of 569 and finally closed at the latter value after a slight recovery in the afternoon.
This dynamic reacts to the positive market reaction Given the central bank’s (BCRA) measures to update exchange rate bands due to inflation and the plan to strengthen reserves, which have resulted in global bond yields being below 10%.
How high was the country risk in Argentina listed today?
According to odds monitor Rava Exchangethe Argentina Country Risk closed this Wednesday in 569 basis points. During the session, the indicator showed bearish behavior at the opening and broke the lower limit of 560 points to reach a minimum 555 unitsa number not seen since July 31, 2018.
However, towards the end of the wheel, the index recorded an increase of 8 units from the low of the day and stabilized at 569 points, representing a slight increase compared to the previous close of 561 points, but maintaining the underlying trend at the current management lows.
The development of country risk in the last week
In the last seven days, the indicator created by the bank was created JP Morgan has shown a trend toward accelerated compression. For the Conclusion of last weekthe index was around the 625 basis pointsbut started a descending path According to the official announcements of the Monday, December 15th. On that day, country risk had already fallen by 5.4% to 590 units, in response to the BCRA’s decision to introduce a new system under which the upper and lower bounds of the exchange rate band will evolve in line with Indec inflation from January 2026.
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The cumulative improvement since last Friday is 8.8%which corresponds to a Decline of 55 basis points in just three powerful wheels. This positive development has resulted in government securities, particularly global bonds under New York law, recording an average increase of 2%. As a result, the market has begun to speculate on the possibility that the government will undertake a new debt placement in global markets in January, given the significant improvement in its perceived credit profile.
Despite the intraday volatility this Wednesday, where the index recovered slightly from its lows, the weekly trend reflects strong investor optimism. According to the newspaper The nation“For the first time, all globals closed with single-digit returns” (Reinhold, M., Country risk reached its lowest level in more than seven yearsDecember 17, 2025). This scenario, with interest rates below 10% per year, is seen by analysts as a necessary threshold for the country to regain access to external voluntary financing.
What is country risk?
Country risk is a financial indicator created by the investment bank JP Morgan This measures the difference in interest rates that an emerging market’s government bonds pay compared to United States government bonds. The latter are considered “risk-free” in the international market, so the index represents the premium or “additional cost” that a country must pay for borrowing and reflects the perceived likelihood that the issuer will default on its financial obligations.
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Technically, the index is expressed in basis points (bp). A difference of 100 basis points represents an additional interest rate of 1% on top of the interest rate paid by the United States. For example, with a country risk of 569 points, at a US bond interest rate of 4%, Argentina would have to pay around 9.69% annually to issue new debt at the same maturity terms. As defined The Chroniclerthe indicator “measures how much more interest a given country’s debt securities must pay compared to bonds issued by the U.S. Treasury” (Editorial, What is country risk, what does it mean and how is it calculated?August 27, 2025).
The level of country risk not only affects the nation state, but also acts as a reference interest rate for the entire economic ecosystem. A high indicator makes credit more expensive for the provinces and private companies seeking to invest, while a sustained decline, such as that observed in December 2025, usually foreshadows a climate of greater exchange rate stability and an improvement in gross domestic product (GDP) growth expectations.
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