US pledges to do ‘what is needed’ to support Argentina’s economy

In light of the country’s extreme volatility in the country’s financial markets, US President Donald Trump has offered to support Argentina’s economy.

Following a significant selloff of its assets, US Treasury Secretary Scott Bessent stated on Monday that Washington is prepared to do “what is needed” to stabilize the Latin American nation’s economy.

According to Bessent, options for assisting Buenos Aires include central bank currency swaps, direct currency purchases, and the purchase of US dollar-denominated government debt.

The Treasury Secretary said further details would be revealed after Tuesday’s meeting between Trump, Bessent, and Argentine President Javier Milei in New York.

Argentina will be Great Again, according to Bessent, who described Buenos Aires as a “systemically important US ally” on X.

Following Bessent’s comments, the Argentinian peso, stocks, and bonds increased.

Milei thanked the Trump administration for its “unconditional support,” which led to an upset election victory in 2023 when she promised to halt runaway inflation and decades of economic decline.

Milei said on X that “the people who support the principles of freedom must work together for the well-being of our peoples.”

The Argentinian leader has become a significant Trump ally in the Americas and frequently appears on American conservative platforms.

Following Milei’s La Libertad Avanza coalition’s disastrous performance in local elections earlier this month, investors rushed to unload the peso and government bonds.

Milei’s chances of winning the nation’s midterm elections in Buenos Aires province have been squelched by the result, which the libertarian leader hopes will give him a stronger mandate to carry out his campaign of right-wing economic reforms.

Argentina’s economy was helped by the International Monetary Fund, World Bank, and Inter-American Development Bank, which agreed to provide bailout funds in April.