Argentina has started talks with the International Monetary Fund seeking financial rescue once again, as inflation soars and the currency sinks.
Buenos Aires looks to be going through another economic nightmare, with prices rising rapidly while the Argentine peso drops. The central bank announced last week another increase in rates to 40 percent — as the 12-month inflation rate hit 25.4 percent, above its 15 percent target. At the same time, since the start of the year, the peso is down by more than 20 percent against the U.S. dollar.
"Argentina is still a difficult country and unless they do reforms then it's going to be having issues," Michele Gesualdi, the chief investment officer at Kairos Investment Management, told CNBC's "Squawk Box Europe" Wednesday.
According to Gesualdi, the lack of reforms in the country has deepened the economic problems.
"There was a lot of excitement involving (President Mauricio) Macri, and frankly we were involved for example in the first two years. But then the risk reward wasn't very compelling in fixed income, it was a bit better in equities, but increasingly over the last few quarters Macri has been disappointing investors in terms of not doing the reforms he promised," Gesualdi said.
Macri, from the center-right Republican Proposal, was elected in 2015 on a reformist agenda. However, it seems he has struggled to deal with economic issues left by his predecessors and has turned to the IMF for help.