Reference News Network September 9 report - According to AFP on September 8, the Argentine currency exchange rate and stock market were hit on August 8, as President Milei faced a setback in local elections the day before. This is also a signal of disillusionment and led to calls for "self-examination" within the ruling camp.

On the 7th, the center-left Peronist opposition faction won a significant victory in the Buenos Aires province, with a gap that was somewhat unexpected: the opposition received 47% of the votes, while President Milei's Free Argentina Party only received 33% support. Milei himself acknowledged it was a "clear failure".

The report stated that this electoral defeat is a signal that the government has fallen into a defensive position. On the 8th, the stocks in Wall Street fell sharply, with some stocks falling by as much as 15%, and the Buenos Aires stock market closed down 13%.

In the foreign exchange market, the Argentine peso suffered a sharp decline against the US dollar due to loss of investor confidence, but rebounded later that day. However, its exchange rate of 1,425 pesos per US dollar had dropped 3.2% compared to September 5.

The densely populated Buenos Aires province is traditionally a stronghold of the opposition. If Milei had won here, it would have been a good achievement. However, due to the large population, the election results on the 7th were a test, which may indicate the results of the national midterm elections on October 26.

For Milei, who does not hold a majority in Congress, the key vote on the 7th has shown that many of his reform measures are unpopular in the relatively chaotic Congress. Recently, Congress canceled his veto power over a financial bill, further highlighting his weakness in Congress.

This president, who calls himself a "laissez-faire capitalist", defiantly stated on the evening of the 7th that "there will be no slightest retreat in policy," no intention of relaxing regulation, but rather will turn to "deepening and accelerating." (Translated by Lu Longjun)

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