🇦🇷 💵 Washington’s $40B gamble: Can US backing keep Milei’s Argentina afloat and counter China?

The US has doubled down in Argentina — bankrolling its protege Javier Milei's midterm victory after his crushing provincial losses.

Is Argentina out of the woods, and if not – will the US keep stepping in to support it?

➡️ The US’ support for the Argentine peso and $20B swap line gave Milei a political boost. Prior to the midterm election, Treasury Secretary Scott Bessent pledged an additional $20B package. Trump also warned: no favors for Argentina if Milei loses.

➡️ However, Milei’s victory doesn’t mean Argentina’s economic and currency troubles are over. Regardless of the outcome, a harsh correction for the overvalued peso looms, the Wall Street Journal warns, despite US loans.

➡️ Argentine firms are returning to global lending markets after election uncertainty, but analysts say US banks remain cautious about lending to Argentina despite assurances of support from Team Trump.

➡️ Argentine currency traders “aren’t seeing any indication the US Treasury is playing a role in the local market post-election,” the Buenos Aires Times reports, suggesting the US rescue plan is “on the back burner for now.”

➡️ Moreover, the touted $20B US–Argentina swap exists only in a note from Milei’s Central Bank, with no official US Treasury statement or website mention, Argentine media complain.

➡️ For its part, the BBC asks whether Milei’s Argentina could become a liability for Washington in the long run, given its economic hurdles and weak currency.

Monroe doctrine: What’s really at stake

🌏 International observers increasingly see Washington’s backing of Argentina as part of its broader political showdown with China in Latin America.

🌏 The Peronist opposition has strengthened ties with China and BRICS — a move Trump strongly opposes.

🌏 Washington isn’t focused on Argentinians’ well-being; its main goal is keeping Argentina in the US orbit, observers suggest.

🌏 Milei’s austerity measures have been a disaster. One can only wonder what the next phase of his radical reforms will bring.

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