is determined to rescue the Government of its unconditional Argentine ally, . But his particular way of doing it seems to generate more tensions than it dissipates. A week ago, the president of the United States received Milei at the White House and confirmed a multimillion-dollar aid. However, as it depended on the result of the legislative elections next Sunday, the financial anxiety deepened. This Monday, the Central Bank of Argentina announced “an exchange stabilization agreement with the Treasury Department” of the United States for $20 billion. The positive effect was disguised by statements from Trump that painted a gloomy picture: “Argentina is fighting for its life,” he said, “they have no money,” “they are dying.”
The Republican’s words were an attempt to silence internal criticism against him with millions of dollars. This Sunday, Trump assured that he could buy Argentine meat with the purpose of lowering prices in the US market. On board the Air Force One, the official plane, and while he was heading to Washington from his home in Mar-a-Lago, Florida, he was consulted by the press about questions from American farmers about his support for the far-right president.
“Argentina is fighting for its life,” he responded. “Nothing is benefiting Argentina. They are fighting for their lives […] They have no money, they are fighting with all their might to survive,” he remarked. “If I can help them survive in a free world… I like the president of Argentina. I think he’s doing everything he can […] They are dying. OK? “They are dying,” Trump insisted.
Hours later, already on Monday, the announced swap (currency exchange) between the United States and Argentina.
“The Central Bank of the Argentine Republic (BCRA) announces the signing of an exchange stabilization agreement with the United States Treasury Department, for an amount of up to 20 billion dollars,” the entity said in a statement. The BCRA explained that the objective is “to contribute to the macroeconomic stability of Argentina, with special emphasis on preserving price stability and promoting sustainable economic growth.”
According to the statement, the swap will allow the BCRA to “expand the set of monetary and exchange rate policy instruments available, including strengthening the liquidity of its international reserves.” In a context marked by the depreciation of the Argentine currency, together with the fall of bonds and stocks, Milei’s ultra Government aims to strengthen its capacity to “respond to conditions that may lead to episodes of volatility in the exchange and capital markets.”
The confirmation of swap It arrives six days from the South American country. The national legislative elections find Milei at its worst, in the middle of and politically weakened. His economic plan, where his greatest achievement lies, the slowdown in inflation, has been in check for weeks. The peso has been falling against the dollar for days, despite the fact that the US Treasury intervenes in the exchange market to support it.
Last week, Treasury Secretary Scott Bessent confirmed that, in addition to the swapthe White House is working “with investment funds and private banks” on a new line of credit for Argentina of 20 billion dollars “aimed at the sovereign debt market.” Already in April, also at the request of the Trump Government, the International Monetary Fund had granted the South American country a bailout of another 20 billion dollars.
Trump’s decision to support Milei is clear. The doubts center on what would happen if the extreme right does poorly in the elections. “If a socialist or a communist wins, you feel differently about making an investment. If [Milei] “If you lose to a far-left candidate, we will not be generous with Argentina,” Trump acknowledged last Tuesday, sitting face to face with Milei.
In the domestic politics of the United States, the implementation of the swap renewed the criticism against Trump’s bailout of Milei, reiterated this Monday by both Democratic and Republican legislators.
“At a time when tariffs, price gouging, and cuts to essential domestic programs are impacting American families and businesses, it is troubling that funds funded by American taxpayers are being used to stabilize a foreign government’s currency, apparently to further partisan objectives,” Senators Tim Scott and Elizabeth Warren, along with representatives French Hill and Maxine Waters. The letter lists everything from the economic problems of the Milei program and “general discontent”, to the Government’s “corruption scandals” and Argentina’s “uncertain” payment capacity.
