US Treasury says it ‘stands ready’ to support Argentina

ISTANBUL

The US Treasury “stands ready” to support Argentina, according to a social media post, amid the country’s volatile market, further exacerbated by Argentinian President Javier Milei’s recent electoral defeat.

US Treasury Secretary Scott Bessent said through the US social media company X that “Argentina is a systemically important U.S. ally in Latin America.”

The center-left Justicialist Party — also called the Peronists — won in local elections in Buenos Aires on Sept. 7.

The opposition to Milei came in 13 points ahead of the Argentinian president’s La Libertad Avanza, much higher than expected.

“All options for stabilizations are on table,” said Bessent, offering a lifeline to the libertarian president and Trump ally in this climate, which cooled down the volatility in the market after investor concerns were fueled post–Buenos Aires provincial elections.

The US Treasury is going to provide “swap lines, direct currency purchases, and purchases of US dollar-denominated government debt from Treasury’s Exchange Stabilization Fund” to Argentina, according to the post.

“Opportunities for private investment remain expansive, and Argentina will be Great Again,” said Bessent, echoing US President Donald Trump’s “Make America Great Again” slogan.

Bessent stated that Milei’s “support for fiscal discipline and pro-growth reforms” are needed to break the decline in the country’s long-standing cycle. Milei had promised to decrease inflation by cutting down on government spending, while bringing stability to the Argentine peso.

After Milei’s loss in Buenos Aires on Sept. 7, the Argentine peso lost 5.6% against the US dollar on the next trading day, ending Sept. 8 at a 3.1% decline.

Bessent added that he and Trump will meet with Milei on Tuesday in Manhattan, New York.