Treasury Secretary Scott Bessent said that the United States is prepared to offer loans to Argentina’s central bank, direct currency purchases and purchases of U.S. dollar-denominated Argentine government debt from Treasury’s Exchange Stabilization Fund to keep Argentina’s economy afloat. The value of Argentina’s currency, the peso, has fallen in recent weeks amid concerns about Mr. Milei’s political grip on government.
“Argentina is a systemically important U.S. ally in Latin America, and the U.S. Treasury stands ready to do what is needed within its mandate to support Argentina,” Mr. Bessent wrote on social media.
President Trump has embraced Mr. Milei, whom he has described as his “favorite president,” as a kindred political spirit. Because of their close relationship Mr. Trump has deepened ties between the United States and Argentina, amplifying its strategic significance. Argentina’s economy is increasingly important to the United States as it competes with China for influence in Latin America and scours the globe for strategic minerals such as lithium, which Argentina possesses.
I was watching this from a market standpoint look at ARGT since the announcement. I wish I had been paying attention to this very likely outcome.