Ever since Mauricio Macri became president in 2015, Argentina "has been finding its way back from the financial periphery", says The Economist. Macri has moved in a business-friendly direction, eliminating capital controls and finally reaching a deal with creditors who were stiffed when Argentina defaulted in 2001.
Now index provider MSCI has said it will assess whether Argentina can be considered an emerging market again. It was one of the ten original members of the emerging markets index in 1988. But seven years ago it was downgraded to a frontier market, a category for high-risk, politically unstable stockmarkets such as Morocco or Kazakhstan.
An upgrade would lure in capital from investors who wouldn't dare put their money in a frontier market. Funds with about $1.7trn of assets track the MSCI Emerging Markets index, notes Carolina Millan on Bloomberg.com, compared to just $26bn for the frontier index. Joining Brazil and Chile in the emerging-market category will be another milestone on Argentina's road back tonormality.
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