President Javier Milei is set to visit the White House on Tuesday, seeking a prominent display of political and economic backing from his US counterpart, President Donald Trump, in anticipation of crucial midterm elections. As Argentina grapples with the prospect of yet another financial crisis and Milei’s disapproval ratings continue to climb, the libertarian figure is turning to his influential ally in Washington for assistance. The administration of Trump has committed US$20 billion to bolster Argentina’s economy and has consistently expressed political backing for Milei. However, it has not served as a definitive solution to stabilize markets or enhance the polling numbers of the La Libertad Avanza leader in anticipation of the October 26 elections. Their results will determine if Milei can implement stringent additional cost-cutting reforms or encounter a legislative impasse during the next two years of his term. Approximately fifty percent of the seats in the Chamber of Deputies are available for contest, while one-third of the Senate seats are also subject to election. In recent weeks, Argentina has expended over a billion US dollars to defend the peso, a strategy that a majority of economists consider unsustainable. This situation led to Milei’s supporters in Washington intervening with a financial bailout.
“Argentina faces a moment of acute illiquidity,” stated US Treasury Scott Bessent, as he announced a currency swap deal that would provide Argentina with access to US$20 billion. “The US Treasury stands ready to implement any necessary exceptional measures to ensure market stability without delay.” The announcement has triggered a rally in Argentine bonds and equities, simultaneously alleviating pressure on the peso. This event represents an uncommon case of direct US involvement in the currency markets of Latin America, highlighting Washington’s strategic interest in the success of Milei. “The United States observed this aggression against Argentina, against the principles of liberty, and against a key ally – which is why they extended their support to us,” Milei stated in a interview. “They recognize our genuine alliance,” Milei stated, alluding to Argentina’s alignment with the interests of the United States and Israel. Milei is scheduled to meet Trump the day following the US president’s rapid visit to Israel and Egypt, during which he expressed admiration for his ceasefire plan in Gaza, shortly after Hamas released hostages in return for prisoners. Trump delivered remarks to the Knesset, Israel’s Parliament, prior to his departure for Egypt, where he participated in a Gaza summit. During this summit, he and the leaders of Egypt, Qatar, and Turkey formalized their commitment by signing a declaration as guarantors of the Gaza deal.
Milei expressed his admiration for Trump on social media on Monday. “My deepest admiration and gratitude to President Donald Trump for his extraordinary leadership and courage in ending the war, also achieving the release of all the hostages, including three Argentines,” stated the President. Thank you, President Trump. “Your dedication to life, liberty, and peace has rejuvenated optimism globally,” he continued. “It is a privilege to regard you not only as a partner in upholding these principles but also as a cherished friend and a model of leadership that motivates all of us who advocate for liberty.” In a recent meeting, Trump remarked that Milei was performing a “fantastic job.” Trump stated “He, like us, inherited a mess, and what he’s done to fix it is good. We are fully supportive of him.” In Argentina, there is intense speculation regarding what Trump may seek from Milei in exchange for his backing. Prior to Milei assuming office, Argentina, a significant producer of lithium, had been strengthening its relationships with China. Milei’s office indicated that the leaders would engage in discussions on “multiple topics.”
“The issues that have been finalized prior to the meeting will be announced, while those that require further finalization will remain pending,” stated a release. On Sunday, Economy Minister Luis Caputo dismissed any immediate intentions to dollarise the economy or modify the floating exchange rate band, amidst speculation regarding potential changes following the elections. “The United States is prepared to continue purchasing pesos,” he stated. Argentina’s economic team maintains a degree of discretion, yet Caputo suggested with considerable emphasis that additional support is likely to be provided. “There will likely be an announcement on Tuesday,” Caputo stated during an interview. Multiple government officials have refuted claims that the United States has requested Argentina to terminate its current US$18-billion currency swap with the Central Bank of China, a deal that was renewed in the previous year. “I don’t believe that excluding China from Argentina is a component of the agreement,” Cabinet Chief Guillermo Francos stated last Friday. Bessent, asserted that Milei is dedicated to expelling China from the nation, a statement that elicited a response from the Chinese Embassy in Buenos Aires, which accused the United States of “acts of hegemony and bullying.”