Javier Milei’s victory in the Argentine presidential election has sparked a surge in stock prices, with YPF, a state-owned oil firm, seeing a 40% increase on Monday. If Milei’s plans for economic reform are implemented, there could be significant changes to the country’s economy. Milei wants to revitalize the Argentine economy by using the US dollar and potentially privatizing state-run companies such as YPF. He aims to add value to these companies to make them more sellable and beneficial for the people of Argentina.

The nationalization of 51% of YPF by the government over ten years ago has left substantial shale gas and oil reserves in their hands. If Milei’s plans come to fruition, this could lead to major economic changes in the country. The success of his administration will depend on its ability to manage inflation and stabilize the exchange rate between the peso and the dollar.

Other Argentina-linked equities also saw gains on Monday, with Grupo Financiero Galicia and Banco Macro rising over 20%. The Global X MSCI Argentina ETF also experienced an increase of over 11.6% soon after midday in New York.

Milei described his election win as a defeat of a decadent model, stating that there is no turning back. As he begins his presidency, he will have to navigate complex economic challenges and find ways to improve the lives of Argentine citizens while managing inflation and stabilizing the exchange rate between the peso and dollar.