In a drastic policy shift, Argentina hiked its interest rates by 21 pp to 118% and devalued its currency by around 18% to 350 pesos per USD. This move followed a surprising show of support for a populist candidate in the primary vote, resulting in asset turmoil. The peso dropped by up to 14% in parallel markets, hitting an all-time low. Argentina’s stocks and debt also experienced significant losses. Notably, Javier Milei, a libertarian who supports dollarizing the economy, secured around a third of the primary votes, with the center-right opposition at 28% and the incumbent left-leaning party trailing closely at 27%.