Argentina returns from the frontier
Index provider MSCI has said it will assess whether Argentina can be considered an emerging market again.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Twice daily
MoneyWeek
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Four times a week
Look After My Bills
Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!
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.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
How a ‘great view’ from your home can boost its value by 35%A house that comes with a picturesque backdrop could add tens of thousands of pounds to its asking price – but how does each region compare?
-
What is a care fees annuity and how much does it cost?How we will be cared for in our later years – and how much we are willing to pay for it – are conversations best had as early as possible. One option to cover the cost is a care fees annuity. We look at the pros and cons.
