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The U.S. Secretary of the Treasury, Scott Bessent, stated this Monday that Washington is prepared to do what is necessary to support the Argentine economy and President Javier Milei.
His statements come amid a tense political and financial climate in Argentina, just weeks before key legislative elections and after Milei faced the stinging defeat of his party, La Libertad Avanza (LLA), in the legislative elections in the province of Buenos Aires on September 8.
"Argentina is a systemically important ally for the U.S. in Latin America, and the Department of the Treasury is ready to do whatever it takes within its mandate to support the country. All options for stabilization are on the table," Bessent wrote on his official X account.
Among the options being considered by the Treasury to assist the Argentine government are:
- Establish swap lines with the Federal Reserve, through which the exchange of currencies between central banks would be facilitated.
- Buy Argentine pesos directly with U.S. dollars to curb the depreciation of the peso and partially protect the purchasing power of citizens.
- Acquire Argentine debt in dollars through the Treasury's Stabilization Fund (ESF), a tool that allows the U.S. to intervene in international markets when deemed strategic.
The potential financial assistance is framed within the ideological alignment between Milei, Bessent, and the President of the United States, Donald Trump, with whom the Argentine leader is scheduled to meet this Tuesday in New York. The meeting coincides with the United Nations General Assembly, which gathers leaders from around the world.
In a social media post, Milei thanked Washington for its support and expressed his commitment to shared values:
"Enormous gratitude to Secretary Scott Bessent and President Donald Trump for their unconditional support of the Argentine people, who two years ago chose to turn around a century of decline with great effort. Those of us who uphold the ideas of freedom must work together for the well-being of our peoples. Long live freedom, damn it!" he wrote.
Milei, under pressure
Buenos Aires is the largest electoral district in the country and is regarded as the most influential indicator ahead of the national elections on October 26. The defeat in early September, where Peronism won by more than 13 points over La Libertad Avanza, was a significant blow to Milei.
The Argentine government is facing a complex scenario, with strong economic and political pressures, as there is just over a month left until the legislative elections in which half of the Chamber of Deputies will be renewed.
Despite the electoral setback, Bessent reaffirmed his optimism regarding Argentina's economic future and underscored the potential for private investment.
"The opportunities for private investment remain extensive, and Argentina will be great again," he remarked, clearly alluding to Trump's campaign slogan, Make America Great Again.
Frequently Asked Questions about U.S. Support for the Argentine Economy
How does the United States plan to support the Argentine economy?
The United States is evaluating several measures to support the Argentine economy, including the establishment of swap lines with the Federal Reserve, the purchase of Argentine pesos with U.S. dollars, and the acquisition of Argentine debt in dollars through the Treasury Stabilization Fund.
What motivated the U.S. support for Argentina?
The support of the United States for Argentina is framed within the strategic importance of the South American country as an ally in Latin America and the ideological proximity between Argentine President Javier Milei and U.S. President Donald Trump. The ideological closeness and shared interests in the region are key factors in this support.
What is the connection between the meeting between Milei and Trump and economic support for Argentina?
The meeting between Milei and Trump in New York coincides with the United Nations General Assembly and serves as a gesture to strengthen the bilateral relationship, which could facilitate U.S. economic support for Argentina amid a context of political and economic challenges.
How is the political situation in Argentina affecting support from the United States?
The support from the United States comes at a critical moment for Argentina, following the defeat of Javier Milei's party in the provincial legislative elections. The backing of the United States could serve as a stabilizing factor amid the political and economic pressure in the country.
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