The United States is “ready to do what is needed” to help stabilize Argentina’s worsening financial crisis, according to US Treasury Secretary Scott Bessent. All options for stabilization are on the table,” Bessent posted on social media, referring to Argentina as a “systemically important US ally in Latin America.
As previous election defeats cast doubt on the viability of Javier Milei’s cost-cutting, free-market agenda, the message helped to soothe the trembling financial markets. As investors flee Argentine stocks and bonds, the peso’s value has been falling.
In 2023, Milei, a libertarian economist and supporter of US President Donald Trump, won the presidency of Argentina as an outsider candidate on a platform of drastic government spending cutbacks and other changes to curb skyrocketing inflation. That commitment depends on the Argentine peso remaining stable.
However, as investors withdraw funds from the nation, partly due to concerns about the government’s ability to maintain the peso’s stability, the currency’s value has declined. The Argentine central bank has intervened in recent weeks in an effort to prevent the peso from depreciating further.
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