The United States has offered to help stabilise Argentina’s volatile economy, according to President Donald Trump and Treasury Secretary Scott Bessent.
Trump said Argentina is unlikely to need a financial bailout after meeting with Argentina President Javier Milei today, though Bessent said the U.S. is “ready to do what is needed”.
“All options for stabilisation are on the table,” wrote Bessent.
“These options may include, but are not limited to, swap lines, direct currency purchases, and purchases of U.S. dollar-denominated government debt from Treasury’s Exchange Stabilization Fund.”
Argentina’s peso rose by 6% on Monday after Bessent’s pledge, its first gain in eight days.
The peso’s value has plummeted over the past week as investors pulled their money from the country, with Milei saying the markets were “in panic mode”.
Argentina’s central bank spent $1.1 billion of its reserves to buy pesos last week, and its government has temporarily suspended agricultural export tariffs to encourage sales.
Milei is an ideological ally of the current U.S. administration, with Trump endorsing Milei’s re-election bid today ahead of midterm legislative elections next month.
The World Bank also said today that it would accelerate its US$12 billion support package for Argentina, deploying up to $4 billion in public sector financing and private sector investment in the coming months.
It will prioritise projects in sectors like mining, tourism, and energy for early funding consideration, the World Bank said.
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