"Following a meeting on Tuesday last week on the sidelines of the United Nations General Assembly (UNGA) in New York, US President Donald Trump described his Argentinian counterpart, Javier Milei, as a truly fantastic and powerful leader. He told reporters, I'm doing something I don't often do I'm giving my full endorsement to him. The next day, US Treasury Secretary Scott Bessent said that he was working in close coordination with President Milei and would do what is necessary to support Argentina's economy."
"Bessent's pledge came after Argentine bond prices plunged sharply last week, as investors watched the country's central bank rapidly burn through its scant foreign currency reserves to defend the falling peso. On Tuesday this week, the currency fell by more than 6 percent its biggest drop within a single day since September 8, forcing the government to sell yet more dollars in the spot market to shore it back up."
"A maverick outsider, Milei secured a surprise election win in 2023 by promising to tame runaway inflation and promote stability. Disillusioned by decades of financial crises, Argentinian voters elected Milei as their president in November 2023. The far-right libertarian promised a dose of painful shock therapy namely by slashing state spending to curb fiscal imbalances and tame inflation. Milei's electoral success was fuelled by years of economic frustration."
The United States is planning to extend a $20 billion loan to Argentina to support President Javier Milei. President Donald Trump publicly endorsed Milei and described him as a powerful leader. Treasury Secretary Scott Bessent pledged close coordination with Milei and said he would do what is necessary to support Argentina's economy. Argentine bond prices plunged as investors watched the central bank burn through scant foreign currency reserves to defend the peso. The peso fell more than 6 percent in one day, forcing government dollar sales. Milei won in 2023 promising to slash state spending and implement shock therapy to curb fiscal imbalances and tame triple-digit inflation.
Read at www.aljazeera.com
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