Argentina is struggling to overhaul its economy and has faced greater financial turbulence since the ruling party lost an election in the province of Buenos Aires that could signal a challenge in a midterm congressional election in October, The Wall Street Journal (WSJ) reported Monday.
In a thread on X, Bessent said the country is a “systemically important” U.S. ally in Latin America.
The options Treasury is considering to support the country include swap lines, direct currency purchases and purchases of U.S. dollar-denominated government debt from Treasury’s Exchange Stabilization Fund, Bessent said in another post on the thread. It could consider other options as well, Bessent said.
“We remain confident that [Argentine President Javier Milei’s] support for fiscal discipline and pro-growth reforms are necessary to break Argentina’s long history of decline,” Bessent said in a third post.
Bessent closed the thread with a post saying that he and President Donald Trump will meet with Milei Tuesday (Sept. 22) and that more details about Treasury’s plans will be made available shortly after the meeting.
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In a Monday post on X translated by the social media platform, Milei said he is grateful to Bessent and Trump for their support for the Argentine people, “who two years ago chose to reverse a century of decadence with great effort.”
“Those of us who defend the ideas of freedom must work together for the well-being of our people,” Milei said. “See you Tuesday in New York.”
According to the WSJ report, when Milei took office in late 2023, he slashed Argentina’s spending and removed tariffs and import restrictions.
During his time in office, the country’s monthly inflation dropped from nearly 26% in December 2023 to 1.9% in July, the report said.
Milei is hoping to increase his congressional support in the October election but could be facing declining support as voters focus on the unemployment rate, which rose from 5.7% in late 2023 to 7.6% in the second quarter, per the report.
