This time it is Argentina Merval Index. On 12th Aug 2019, Merval Index collapsed more than 37.93% post-Argentine election surprise. The argentine stock market moved lower by 11% soon after trading opened for the day
Argentina’s peso shed nearly 23% and shoot up to a high of 62 against the dollar with an intraday loss of around 30% which is later followed by a pullback towards 55.79 levels.
Reuters reported that ” Argentina’s central bank used $50 million in its own reserves, for the first time since September last year, to intervene in the foreign exchange market and defend the peso in the face of a massive sell-off “
However, for Merval Index 10% crash is not a new thing. This is the third attempt to close more than 10% down since 2011. However, the election results turn out to be a black swan event crashing the index more than 34 plus percent.
It is a Gentle Reminder from merval index that once in a while, there will be a BlackSwan. Get yourself prepared in the future.