A Contrarian Week in Argentine Markets
The first week of August 2026 concluded with a negative balance for Argentine assets, diverging from the record marks achieved in New York. While global equities closed with gains, the local market experienced a necessary correction, opening up potential opportunities for future investments.
The S&P Merval—the benchmark index of the Buenos Aires Stock Exchange—recorded a 6.2% drop in pesos, extending a six-day consecutive losing streak. Measured in US dollars via the 'Contado con Liquidación' (CCL, a popular financial operation used to purchase dollars at market rates), it lost 6.7%, briefly dropping below the USD 2,000 threshold to settle at 3,086,785 points, its lowest level since June 5.
Country Risk and Sovereign Bonds
The country risk, measured by the JP Morgan index (which reflects the premium investors demand to hold Argentine debt over US Treasuries), rose by 17 units to 451 basis points, marking a two-month high since June 10. Sovereign bonds in dollars averaged a 0.9% drop. 'Bonares' (local law bonds) fell by 0.4%, while 'Globales' and BOPREAL (a specific dollar-denominated bond issued by the Central Bank) retreated around 0.2%.
Argentine ADRs in Wall Street
ADRs (American Depositary Receipts, which allow trading shares of Argentine companies in the US market) also faced losses of up to 10%. Banco Supervielle led the declines with a -10.2% drop, closely followed by Loma Negra (a leading cement company), which ceded -9.9%. These adjustments often represent attractive entry points for international investors tracking Latin American equities.
Exchange Rates and the Central Bank's Role
In the foreign exchange market, the wholesale dollar (the official rate used for imports and exports) traded near the $1,500 mark, offered at $1,498.50. Throughout the week, it advanced 13.50 pesos (or 0.9%), yet it remained 23.6% below the ceiling of the official exchange rate band ($1,852.73). Meanwhile, the 'blue dollar' (the informal, parallel exchange rate widely used by locals) saw its seventh consecutive drop, closing at $1,525 for sale, with a weekly decline of 2.2%.
The Central Bank of the Argentine Republic (BCRA) purchased a total of USD 111 million over the five trading sessions. International reserves finished at USD 49,455 million, after having surpassed the USD 50,000 million mark on August 5, showing a continued effort to strengthen the country's financial position.
Global Context and Local Inflation
Tensions in the Strait of Hormuz maintained volatility in oil prices, though the Brent barrel completed the week down 6.6%, settling at USD 82.16. Additionally, the US reported a loss of 23,000 jobs in July, raising new questions about the Federal Reserve's monetary policy. On a local note, inflation in the City of Buenos Aires (CABA) for July was 2.9%, slightly above market expectations, showing the resilience and gradual stabilization of the Argentine economy.