On Monday, shares of state-owned oil company YPF surged by 40% after Javier Milei won the presidential election and defeated Economy Minister Sergio Massa. If Milei’s plans come to fruition, there could be significant economic changes in Argentina. Milei has ambitious plans to revive the economy by utilizing the US dollar and potentially selling off state-run companies such as YPF.

In a radio interview, Milei stated that his administration’s goal is to increase the value of companies and make them more saleable, which would benefit the people of Argentina. The government had nationalized 51% of YPF over a decade ago, taking control from Spain’s Repsol. Today, YPF manages substantial shale gas and oil reserves.

Milei’s victory prompted a surge in Argentine stocks and dollar bonds on Monday. In addition to YPF, other Argentina-linked equities such as Grupo Financiero Galicia and Banco Macro also experienced gains of over 20%. The Global X MSCI Argentina ETF also saw gains, reaching over 11.6% shortly after midday in New York.

Milei described his election win as a victory against a corrupt model, asserting that there is no turning back. To manage Argentina’s historic inflation, the new government plans to prioritize the use of the US dollar over the peso. This decision is expected to impact the exchange rate between the two currencies.