Potential exclusion of the MSCI Argentina Index from the MSCI Emerging Markets Index
MSCI announced today that it will continue consulting with market participants on the classification of
the MSCI Argentina Indexes, as international institutional investors continue to be subject to stringent
capital controls which were put in place in September 2019, making it impossible for international
investors to access the domestic equity market.
“The MSCI Argentina Indexes remain replicable, as only foreign listings are currently eligible for index
inclusion, but the imposition of the current capital controls is not in line with the market accessibility
criteria of the MSCI Emerging Markets Indexes,” said Sebastien Lieblich, Global Head of Index
Solutions and Chairman of the MSCI Equity Index Committee. Mr. Lieblich added, “The Argentinian
authorities must realize that the prolonged application of capital controls or the introduction of further
capital controls may force the reclassification of the MSCI Argentina Indexes from Emerging Markets
status to either Frontier Markets or Standalone Markets status.”
MSCI will consult on the potential reclassification of the MSCI Argentina Index as part of the MSCI
2021 Market Classification Review. However, any event that results in further deterioration of market
accessibility will prompt MSCI to remove the MSCI Argentina Indexes from Emerging Markets as soon
as practicable.
???