U.S. Supports Argentina's Economic Stabilization Amid Political Turbulence
U.S. Treasury Secretary Scott Bessent announced potential stabilization measures for Argentina, including currency swaps and debt purchases, contingent on talks between Argentine President Javier Milei and U.S. President Donald Trump. Amid Argentina's financial turmoil, President Milei seeks support for economic policies following electoral setbacks.
In a bid to stabilize Argentina's economy, U.S. Treasury Secretary Scott Bessent declared on Monday that "all options for stabilization are on the table," pending the outcome of talks between Argentine President Javier Milei and U.S. President Donald Trump in New York.
Bessent suggested that options could involve swap lines, direct currency purchases, and U.S. dollar-denominated debt acquisitions from the Treasury's Exchange Stabilization Fund. This comes as Argentina grapples with financial instability and public discontent following its ruling party's recent electoral losses in Buenos Aires.
The context of Argentina's struggle includes a newly signed $20 billion loan agreement with the IMF, requiring economic reforms amid its central bank's aggressive dollar sales to meet market demands. The future of Milei's economic strategies may hinge on further international support as he navigates both political and economic challenges.
(With inputs from agencies.)
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