Argentina's lower house approved the labor reform on Friday, February 20, 2026, sparking a positive response in financial markets. The Country Risk dropped to 519 basis points, aided by gains in sovereign bonds. The Central Bank also built reserves by purchasing US$ 167 million that day.
The approval of the labor reform in Argentina's Chamber of Deputies on Friday, February 20, 2026, boosted the country's financial indicators. According to Rava Bursátil reports, the Country Risk, measured by JP Morgan, closed at 519 basis points, a drop of five points from Thursday's close of 524. This decline was linked to an average 0.7% rise in dollar-denominated sovereign bonds, such as Globals and Bonars, amid optimism over the executive's structural reforms.
During the session, the indicator ranged between a high of 524 and a low of 516 points. Weekly, the Country Risk remained stable at 519 points, with a low of 511 on Tuesday the 17th and a peak of 524 on Thursday the 19th. The labor reform's passage was met with 'moderate celebration' by investors, offsetting earlier losses, per an Infobae report from February 20, 2026: 'The country risk subtracted three units for Argentina, at 519 basis points'.
Meanwhile, the Central Bank of the Argentine Republic (BCRA), led by Santiago Bausili, purchased US$ 167 million in the foreign exchange market that day. Gross international reserves reached US$ 46,261 million, the highest level since August 2021, up US$ 1,348 million from the previous day. Year-to-date, the BCRA has accumulated purchases of US$ 2,412 million, and US$ 1,255 million in February.
The International Monetary Fund (IMF) supported the labor reform but warned of 'transition' costs. Emilio Botto of Mills Capital Group noted that reserve purchases support exchange rate stability and could drive the country risk toward 450 points. The wholesale dollar closed at $1,376, down 0.9%, while the blue dollar traded between $1,410 and $1,430.
The Country Risk measures the premium Argentina pays above U.S. Treasury bonds, reflecting investor risk perception.
