Milei’s FX Reforms Spur Worst Corporate Default Wave Since 2020

The article discusses the impact of Javier Milei's foreign exchange (FX) reforms in Argentina. While the reforms have brought stability to the country's chaotic FX market and gained praise from investors, they have also triggered the worst wave of corporate defaults since the COVID-19 pandemic. The reforms introduced by Milei, a libertarian economist, have aimed to address Argentina's long-standing currency imbalances. However, the article notes that the overhaul has had unintended consequences, leading to a surge in corporate defaults. The article highlights that the FX reforms have made it more challenging for companies to access foreign currency, leading to a rise in defaults as businesses struggle to meet their obligations. This has resulted in the worst streak of corporate defaults since the pandemic. The article presents a balanced perspective, acknowledging both the stabilizing effects of Milei's reforms on the FX market and the negative impact on the corporate sector. It underscores the complex and multifaceted nature of the reforms and their consequences.