The administration of United States President Donald Trump has signaled its readiness to assist Argentina in stabilizing its economy, which has faced significant financial market instability. US Treasury Secretary Scott Bessent announced that Washington is prepared to take whatever measures are necessary to support the South American nation after a sharp decline in the value of its financial assets. n nPotential forms of assistance under review include currency swap agreements with Argentina’s central bank, direct acquisition of Argentine currency, and purchases of sovereign debt denominated in US dollars. Bessent noted that further specifics would be disclosed following a meeting in New York between Trump, himself, and Argentine President Javier Milei on Tuesday. n nIn a post on X, Bessent emphasized ongoing prospects for private sector investment in Argentina, declaring that the country “will be Great Again” and referring to Buenos Aires as a “systemically important US ally.” n nMarkets reacted positively to the announcement, with the Argentine peso, equities, and government bonds all experiencing notable gains. n nPresident Milei, who rose to power in 2023 by campaigning on a platform of curbing hyperinflation and reversing prolonged economic stagnation, expressed gratitude for what he described as the Trump administration’s “unconditional support.” He added that advocates of liberty should unite for the benefit of their populations. n nMilei has become a prominent figure among conservative circles in the United States and maintains close alignment with Trump, frequently engaging with American right-wing media outlets. n nThe US offer comes after a wave of investor withdrawals triggered by poor electoral results for Milei’s La Libertad Avanza coalition in key regional elections earlier this month, particularly in Buenos Aires province. These setbacks have raised doubts about his ability to secure a stronger legislative mandate in upcoming midterm polls. n nIn April, Argentina obtained $42bn in financial backing from international institutions including the International Monetary Fund, the World Bank, and the Inter-American Development Bank to shore up its fragile economy. The country, which has cycled through repeated economic downturns over decades, remains the largest borrower from the IMF, with outstanding obligations exceeding $40bn to the Washington-based lender. n— news from Al Jazeera
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US pledges to do ‘what is needed’ to support Argentina’s economy
United States President Donald Trump’s administration has offered to step in to support Argentina’s economy amid severe volatility in the country’s financial markets. n nWashington stands ready to do “what is needed” to help stabilise the Latin American country’s economy following a large-scale selloff of its assets, US Treasury Secretary Scott Bessent said on Monday. n nOptions for assisting Buenos Aires under consideration include central bank currency swaps, direct currency purchases, and purchases of US dollar-denominated government debt, Bessent said. n nFurther details would be announced after talks involving Trump, Bessent and Argentinian President Javier Milei in New York on Tuesday, the treasury secretary said. n n“Opportunities for private investment remain expansive, and Argentina will be Great Again,” Bessent said on X, describing Buenos Aires as a “systemically important US ally”. n nThe Argentinian peso, stocks and bonds surged following Bessent’s comments. n nMilei, who scored an upset election win in 2023 by promising to tame runaway inflation and decades of economic decline, thanked the Trump administration for its “unconditional support”. n n“Those of us who defend the ideas of freedom must work together for the well-being of our peoples,” Milei said on X. n nThe Argentinian leader has emerged as a key Trump ally in the Americas and is a favourite of US conservatives, frequently appearing on their platforms. n nThe Trump administration’s intervention comes after investors rushed to unload the peso and government bonds following a disastrous performance by Milei’s La Libertad Avanza coalition in local elections earlier this month. n nThe defeat in Buenos Aires province has cast a pall over Milei’s prospects in nationwide midterm elections next month, which the libertarian leader hopes will grant him an expanded mandate to pursue his programme of right-wing economic reforms. n nIn April, Argentina secured $42bn in bailout funds from the International Monetary Fund, World Bank and the Inter-American Development Bank to help prop up its economy. n nThe Latin American country, which has lurched between economic crises for decades, is by far the IMF’s largest debtor, owing the Washington-based institution more than $40bn.