US Secretary of the Treasury Scott Bessent is preparing for a second visit to Argentina, as stated by President Javier Milei. Bessent, commending Milei’s “monumental midterm election victory” from the previous weekend. Furthermore, he urged for a robust and “enthusiastic” reaction from the markets to support Washington’s ally in the south. Milei, a firm advocate for the United States, garnered approximately 41 percent of the votes last Sunday, a victory that enabled him to rejuvenate his administration and solidify his political agenda through various reforms. The electoral success further facilitated Buenos Aires in securing the US$40 billion that US President Donald Trump pledged contingent upon Milei’s victory.
While in South Korea, Bessent remarked on social networks Thursday that he had reached out to Milei to extend his congratulations on the significant midterm election victory of La Libertad Avanza. “Following President Trump’s leadership, President Milei’s message of economic freedom is reverberating across the Western Hemisphere and leading the way in Latin America,” Bessent emphasized. The Treasury chief stated, “the markets should easily and enthusiastically meet” Argentina’s financing needs in 2026. Argentina, which last April entered into a loan agreement with the International Monetary Fund amounting to US$20 billion, faces maturities of US$4 billion in January and US$4.5 billion in June. The US Treasury has engaged in the purchase of pesos multiple times to assist Milei in managing a currency run that had persisted for several weeks leading up to his electoral victory.
“I was particularly pleased to learn that the youth and the most disadvantaged groups … cast their votes in overwhelming support of President Milei. They know that this is Argentina’s last chance to break decades of economic mismanagement,” Bessent stated. Bessent asserts, “President Trump’s policy of Peace through Economic Strength is going to transform Latin America (sic).” The President of the United States extended his congratulations to his Argentine counterpart following the results, commending him for his “wonderful work.” Bessent is set to visit Argentina following the government’s success in the midterm elections, as disclosed by Milei in a later post on X. “It is gratifying to learn of your forthcoming visit to Argentina. We eagerly await your arrival and welcome you with open arms,” Milei expressed, in response to a message praising the “economic freedom” of the local administration. This marks Bessent’s second visit to Buenos Aires during her tenure in office. The most recent visit to this country occurred on April 14 of this year, the Monday subsequent to the announcement of the program with the IMF that established the system of foreign exchange brackets and outlined new objectives. At that time, the US official emphasized President Trump’s strong backing for La Libertad Avanza’s policies and remarked that Argentina ought to “break away” from the currency swap with China.
In the lead-up to the election, the markets perceived the floating scheme between maximum and minimum limits as concluded; however, following the ruling party’s favorable outcomes in the midterm polls, investors reinstated their short-term confidence in financial stability. Banks reached a consensus on the necessity of easing the exchange rate and, looking ahead, for the Central Bank to initiate the accumulation of reserves. The previous three sessions witnessed no direct intervention from the US Treasury in the foreign exchange market, while negotiations are underway for additional support for the existing US$20-billion currency swap, potentially involving private funding from banks. In the financial sector in Buenos Aires, there were suspicions regarding the closure of financial positions by the Trump administration. Various analyses suggested that the Central Bank issued a bond at an undisclosed rate to place its pesos acquired in the preceding sessions before the elections, amounting to approximately US$2 billion.