Argentina: Markets cheer new minister, but for how long?

BUENOS AIRES (AP) — The markets are cheering the arrival of Sergio Massa as Argentina’s third economy minister in less than a month, but analysts caution that more details are needed about his plans to get the South American country out of its dire economic straits.

The local currency, the peso, strengthened sharply in the financial market on Friday while government bonds saw gains a day after President Alberto Fernández's government unveiled the appointment of Massa as an economic “super minister” that combines the current Economy, Productive Development and Agriculture ministries.

The increases registered on Friday continued a trend that started earlier this week amid rumors that Massa, the head of Congress’ lower house, the Chamber of Deputies, would be joining the administration.

“The market reaction reflects relief that someone with political skills and a strong constituency in the party has taken this key role,” said Benjamin Gedan, acting director of the Latin America program at the Washington-based Wilson Center. “He’s someone who can’t easily be dismissed, and the idea is that there will be some consistency in policy.”

Massa’s appointment came a little more than three weeks after left-leaning Silvina Batakis was named to replace the more moderate Martín Guzmán, who abruptly quit amid complaints that he did not have the full support of the governing coalition that has been split among factions loyal to the president on the one hand and Vice President Cristina Fernández de Kirchner, a former president who continues to hold a strong base of support.

The naming of Batakis was followed by a sharp depreciation of the peso amid stringent capital controls, reflecting uncertainty over whether she had the necessary authority to impose the types of reforms needed to...