Cynthia Ezegwu
The United States Treasury has pledged to back Argentina’s efforts to stabilise its economy as President Javier Milei grapples with market jitters, a sliding peso, and mounting debt.
Treasury Secretary Scott Bessent said Washington stood ready to “do what is needed” to support Argentina, citing options such as swap lines, direct currency purchases, and use of the Treasury’s Exchange Stabilisation Fund. He described Argentina as “a systemically important US ally in Latin America” and expressed confidence in Milei’s pro-growth reforms.
Milei, a self-described “anarcho-capitalist” and close ally of former US President Donald Trump, has faced heavy pressure on the peso following a defeat to the centre-left Peronist movement in a Buenos Aires provincial election earlier this month. The vote was seen as a key test ahead of the October 26 legislative elections.
The Argentine leader is expected to meet Trump and Bessent on Tuesday in New York, on the sidelines of the UN General Assembly, as he seeks US support to meet looming debt obligations.
The International Monetary Fund (IMF), Argentina’s biggest creditor, welcomed Washington’s show of support. IMF Managing Director Kristalina Georgieva said strong policy measures, backed by international partners, were crucial to stabilisation and growth.
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Argentina remains the IMF’s largest debtor, owing $44 billion under a 2018 loan deal, which has since been renegotiated.
Meanwhile, Buenos Aires announced on Monday the suspension of taxes on grain exports until October 31, in a bid to boost foreign currency inflows. Grain is Argentina’s biggest export sector, and officials hope the move will strengthen dollar supply.
Foreign Minister Gerardo Werthein, however, dismissed speculation of a $30 billion US loan, stressing that discussions were ongoing but for a much smaller amount.
Milei thanked Washington for what he described as “unconditional support,” while reaffirming his commitment to fiscal discipline and economic reforms.