The Trump administration pledged on Monday to do whatever is necessary to support Argentina’s struggling economy, throwing a lifeline to the country’s embattled president, Javier Milei, ahead of legislative elections there next month.
Treasury Secretary Scott Bessent said that the United States is prepared to offer loans to Argentina’s central bank, direct currency purchases and purchases of U.S. dollar-denominated Argentine government debt from Treasury’s Exchange Stabilization Fund to keep Argentina’s economy afloat. The value of Argentina’s currency, the peso, has fallen in recent weeks amid concerns about Mr. Milei’s political grip on government.
“Argentina is a systemically important U.S. ally in Latin America, and the U.S. Treasury stands ready to do what is needed within its mandate to support Argentina,” Mr. Bessent wrote on social media.
President Trump has embraced Mr. Milei, whom he has described as his “favorite president,” as a kindred political spirit. Because of their close relationship Mr. Trump has deepened ties between the United States and Argentina, amplifying its strategic significance. Argentina’s economy is increasingly important to the United States as it competes with China for influence in Latin America and scours the globe for strategic minerals such as lithium, which Argentina possesses.
Argentina’s economy has been facing crises for decades. Mr. Milei describes himself as a radical libertarian and since taking office in late 2023 he has introduced policies to curb fiscal imbalances and inflation by slashing government spending and reducing subsidies.
But Mr. Milei has suffered setbacks of late, including a double-digit defeat in provincial midterms; a corruption scandal over medical contracts tied to his sister, Karina Milei; and three congressional votes that overturned his vetoes and restored funding for public health and education. He argued those measures threatened the fiscal balance that he promotes as his signature achievement.
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The post U.S. Pledges Support for Argentina’s Economy and a Trump Ally in Crisis appeared first on New York Times.
