On the side of his admirer and politician, the President of Argentina, the US president stands, as the Treasury announced that they were finalized a $ 20 billion currency exchange frame.
The move, which is also part of the US-China competition, was announced by a US US SCIP Besnd, noting that: “The US Treasury is ready to take any exceptional measures needed to provide market stability.”
With the announcement of the support movement, the Argentine bond expired in 2035 increased by 4.5 cents to 60.5 cents per dollar, while the peso closed to $ 1,418 per dollar, increased by 0.8% per day after 3% earlier.
Preceded Besed-Kaputo-IMF meetings
The Bessed post came after a continuous four -day meeting with his Argentine bonds Luis Kaputo, which included officials of the International Monetary Fund (IMF), which has a $ 20 billion borrowing program with Argentina.
The IMF chief, Cristalina Georgieva, in a report on X, welcomed the US movement, arguing that the IMF is “fully aligned with the support of the country’s strong financial program, based on fiscal discipline and a strong foreign exchange regime”.
The US does not give details and argue that this is not ‘rescue’
A US Treasury spokesman has refused to provide further details, such as the amount of peso purchased and the way in which the $ 20 billion “line” will be structured.
Bessed was previously committed to supporting Argentina by the Ministry of Finance’s Fund to stabilize $ 221 billion and for his majority involvement in IMF reserves.
The Trump government minister later insisted on his statements later that this action is not a rescue, arguing that no money was transferred to Buenos Aires and that the Fund of the Ministry of Finance “has never lost money and will not lose money with it”.
Support in Argentina against China and look at rare land?
He added that the aid provided strategic benefits for the US, including Javier Miley’s commitments, to “exterminate China outside Argentina” and his positive attitude to allow US companies to exploit the country’s rare land and uranium resources.
According to analysts, this move aims, among other things, to provide support to Miley’s party in the Argentine parliamentary elections on October 26th. His party wants to boost his presence in the House to better impose his agenda on government spending and boosting private sector investments.
In Parliament there is mobility to limit the President’s powers to rule through orders, which raises the bet on a victory in the Miley party.
Bessed hastened to provide support to Miley, arguing that the success of Miley’s reforms is “systemic” for the US as they contribute to the creation of a prosperous Western hemisphere.
‘Thanks’ by Miley
Miley, who will meet with Trump unexpectedly next week during the annual IMF and World Bank meetings in Washington, thanked Bessed and Trump with a message on X.
“Together, as the closest allies, we will create a hemisphere of economic freedom and prosperity. We will work hard every day to provide opportunities to our people, “Miley wrote.
Democrats react
Democratic lawmakers in the US Senate have criticized the move, arguing that Trump provides funding to rescue a foreign government and investors while US government agencies are under Shutdown.
Democrats of the US Senate presented legislation that would ban the use of the foreign exchange stabilization fund to rescue Argentina and investors. The measure is largely symbolic, as the Democrats remain the minority in both Congresses.
