President Donald Trump has confirmed that a $20 billion U.S. financial assistance package aimed at addressing Argentina’s currency crisis is linked to the upcoming elections in the country. During a meeting with Argentina’s libertarian leader, Javier Milei, Trump indicated that U.S. support would depend on Milei’s electoral success. He expressed that the upcoming vote on October 26 is significant and suggested that the favorable poll numbers for Milei might improve following this financial injection.
Trump stated that if Milei’s party does not succeed in the elections, the United States would reconsider its generosity toward Argentina. He underscored that a socialist victory could alter U.S. support. Milei, who has been in office since December 2023, attributed Argentina’s economic challenges to political opposition, asserting that these adversaries have intensified the country’s liquidity issues.
The $20 billion currency swap is intended to stabilize the Argentine peso, which has faced considerable depreciation over the years. Milei’s administration has previously attempted to maintain the peso’s value through the country’s reserves, but this has raised concerns about the depletion of financial resources ahead of significant debt obligations. Recent provincial election outcomes indicated a lack of confidence in Milei’s coalition, La Libertad Avanza, which performed poorly and identified several corruption scandals as detrimental to party credibility.
The market’s reaction following the announcement of U.S. support was largely negative, suggesting skepticism regarding the potential impact of Trump’s endorsement on Milei’s electoral prospects. As the country braces for midterm elections, analysts question whether U.S. financial backing will effectively resonate with voters, especially amidst rising discontent regarding Milei’s austerity measures, which have drawn criticism for their social ramifications despite being credited with reducing inflation.
Source: https://www.bbc.com/news/articles/cg7n82gd7pvo?at_medium=RSS&at_campaign=rss