Argentina’s Country Risk Nears 900 Points, Highest Since April
Argentina’s country risk reached 898 basis points on September 3, its highest since April, after officials intervened in the foreign-exchange market to shore up the peso.
Investors sold Argentine bonds on Wall Street, pushing up borrowing costs and signaling growing doubts about debt repayment.
Country risk shot above 1,900 basis points during the 2018 crisis. It fell to about 1,044 basis points by early 2024 as President Javier Milei’s reforms inspired market confidence.
Since then, risk climbed back above 600 basis points in early 2025 amid stubborn inflation and lagging foreign-exchange reserves. Compared with regional peers, Argentina ranks among the riskiest borrowers.
Uruguay trades near 155 basis points, Chile near 180, Brazil near 202, and Mexico near 305. Ecuador’s spread stands around 1,207 basis points, Bolivia’s around 2,092, and Venezuela’s exceeds 20,000.
Higher country risk forces Argentina to pay steeper interest on new debt, diverting budget funds from public services and infrastructure.
A weak peso and high inflation strain household budgets and deter foreign investors. These risks shape unemployment, price stability, and economic growth for everyday Argentines.
| Country | Country Risk (bp) | Relative Position |
|---|---|---|
| Uruguay | ~155 | Lowest, strongest nominee |
| Chile | ~180 | Very low, stable |
| Brazil | ~202 | Moderate |
| Mexico | ~305 | Moderate |
| Argentina | ~641 (Jan 2025) | High |
| Ecuador | ~1,207 | Very high but improving |
| Bolivia | ~2,092 | Extremely high |
| Venezuela | ~20,700 | Catastrophic |
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief