After Javier Milei’s stunning victory in the presidential election, shares of YPF, the state-owned oil company, soared by 40% on Monday. The news sent the stock price to a high of $14.90, just before 2:00 p.m. EST. If Milei’s plans are successful, there could be major changes to the Argentine economy, including privatizing YPF and using the US dollar as a currency.
In an interview with a radio station, Milei explained his goal is to revive the Argentine economy by privatizing state-run companies such as YPF and increasing their value for saleability. He also mentioned plans to use the US dollar as currency and potentially sell off some state-owned companies to raise capital for economic growth.
Milei’s election win prompted other sectors of the Argentine market to perform well too. Argentina stocks and dollar bonds all saw gains on Monday in response to Milei’s victory. Other equities such as Grupo Financiero Galicia and Banco Macro gained over 20%, while the Global X MSCI Argentina ETF went over 11% soon after midday in New York City.
Milei described his election win as a defeat of a “decadent model” and stated that there is no turning back from this new era of economic change. To manage Argentina’s historic inflation, a plan is set to prioritize the dollar over the peso in exchange rates management. The anticipation of this new economic era is expected to impact exchange rates between these two currencies moving forward.