Trump’s “Favorite” Milei...
A Strategic Alliance
The Donald Trump administration in the United States has stepped in as a relief pitcher for Argentine President Javier Milei, just ahead of Argentina’s elections next month.
On September 22 (local time), U.S. Secretary of the Treasury Scott Besant stated on the social networking service X (formerly Twitter), "Argentina is an important U.S. ally in Latin America," adding, "The U.S. Treasury Department is prepared to do whatever is necessary within the scope of our work to support Argentina."
Secretary Besant announced that he is scheduled to meet with President Trump and President Milei on the 23rd, after which further details will be released. He also stated, "All options for stabilization are under review."
Bloomberg reported that possible support measures for Argentina could include currency swaps, direct currency repurchases, and dollar-denominated bonds, but are not limited to these options.
President Trump has called President Milei his "favorite president," building a close relationship with him. President Milei was also the first foreign leader to meet with President Trump after his victory in the November 2024 presidential election.
Recently, doubts have been raised about the Milei administration’s policies, leading to turbulence in Argentina’s financial markets and a sharp plunge in the value of the peso. President Milei has faced significant political challenges, including a major defeat in recent local elections and a corruption scandal involving his sister, Karina Milei. The Central Bank of Argentina has intervened to prevent further depreciation of the peso, using $1.1 billion in reserves. However, concerns are mounting as Argentina faces $10 billion in debt repayments to the International Monetary Fund (IMF) in the first half of next year alone.
Following Secretary Besant’s remarks, Bloomberg reported that the Argentine peso rose for the first time in eight days. Argentina’s dollar bonds and stock index also surged.
Claudio Zampa, founder of Mangat Capital Management, said, "In Washington, President Milei is more than just an economic partner. He is a strategic and geopolitical ally as the United States seeks to build a bloc of like-minded governments in Latin America." Bloomberg noted that by supporting President Milei, the Trump administration has further strengthened its foothold in Latin America.
Secretary Besant stated, "Private investment opportunities remain extensive, and Argentina will be great again."
President Milei expressed his gratitude for the United States’ pledge of support.
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