Argentina's Stock Market Is Getting Skewered
The Burcap, a weighted index which includes stocks in the Merval, is also down 4.4%.
Last month the country devalued the Argentine peso in an effort to keep up dwindling foreign currency reserves and prices soared. The government also announced minor changes to its tight restrictions of dollar buying - changes that some say don't go far enough.
Yesterday, President Fernandez said she was considering punishing dollar buyers by taking away government electric and gas subsidies, and railed against the "divisive" U.S. government.
The country's inflation rate also accelerated to 4.26% in December, the highest rate in 12 months.
What the government needs is a plan, Argentine traders have told Business Insider. Instead, the Kirchner administration has blamed speculation and big corporations for price increases.
"We need to fight speculation of those industry leaders, suppliers, and businesses," said Cabinet head Jorge Capitanich said, reiterating they are committing an "abuse." "It is good Argentines know the truth about price formation" and "we ask people to share with us the effort to avoid abuse," he added.
This is obviously not very comforting to investors.