07:01 GMT +320 October 2019
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    Argentina's peso plunged 29.8 percent at the start of trade

    Argentine Stock Market Slumps 38 Percent on Local Primary Results

    © REUTERS / Enrique Marcarian
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    Argentina's peso currency crashed Monday, closing 15,27 percent weaker at 53.5 per US dollar after slumping some 30 percent to a record low of 65 to a dollar earlier in the day after Argentinian President Mauricio Macri suffered a loss in a primary election, Reuters reported.

    Meanwhile, the Buenos Aires stock exchange tumbled by almost 38 percent on Monday as markets reacted following Mauricio Macri's defeat in the party primaries over the weekend, AP reported.

    The Merval index plunged to 27,530.80 points, a drop of 37.93 percent, as some major stocks lost up to 50 percent, AP said.

    According to local media reports, Frente de Todos (Front for Everyone) party, led by former Prime Minister Alberto Fernandez, is in the lead with 47.7 percent of votes, followed by President Mauricio Macri’s coalition Juntos por el cambio (Together for Change).

    The possible election of Fernandez would reportedly mean a switch to left-of-centre policies that are popular with the majority of voters, but also risk exacerbating what is already record high inflation.

    A number of banks, including Banco Galicia, BBVA, Banco Ciudad and others, already reportedly lowered peso's exchange rate by 10 percent from Sunday to above 50 Argentine pesos per $1.

    Macri has convened a government meeting after losing Sunday primaries and ordered the ministers to analyze the necessary changes in governance and develop a strategy to prevent a sharp fall in the rate of the national currency.

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