WASHINGTON (AP) — Argentina’s liberal leader is lavishing praise on Donald Trump ahead of his first meeting with the U.S. president at the White House on Tuesday. This is a tactic that helped transform the president. Javier Millay financial-strapped country, Trump administration’s closest ally.
For Millais, this grandiose declaration is nothing new. Significant reductions in state spending and Attack on the “woke left” won him Popular among American conservatives.
“Your commitment to life, liberty and peace has restored hope to the world,” Milley wrote on social media on Monday, congratulating the U.S. president on his inauguration. Securing a ceasefire agreement in Gazaafter two years of devastating Israel-Hamas war, a truce is in place.
“I am honored that you are considered not only an ally in defending these values, but also a dear friend and a model of leadership that inspires all who believe in freedom,” he said.
of Trump and Miley’s bromance It is already paying off for Argentina – most recently. $20 billion bailout.
Experts say Milley came to the White House with two clear objectives. One is to negotiate exemptions or reductions in U.S. tariffs on Argentine products.
The other is to see how the US will implement the $20 billion financing. Currency swap line supporting the Argentine peso It will also replenish depleted foreign exchange reserves ahead of the crucial midterm elections later this month.
Turn to Trump in times of crisis
After Milley’s party suffered, the Trump administration made the highly unusual decision to intervene in Argentina’s currency market. Landslide defeat in last month’s local elections.
In addition to setbacks in the opposition-dominated parliament, the party suffered a crushing defeat. caused a crisis of confidence As voters in the province of Buenos Aires expressed their dissatisfaction; rising unemployment ratereduction in economic activity; causing a corruption scandal.
Investors, alarmed that this could spell the end of public support for Millais’ free-market program, dumped Argentine bonds and sold off the peso.
Argentina’s Treasury Department has begun draining precious dollar reserves at a breakneck pace in an effort to strengthen the currency and keep the exchange rate within trading ranges set as part of the country’s recent policies. $20 billion agreement with International Monetary Fund.
But as the peso continued to fall, Millay became desperate.
On September 23, he met with President Trump while in New York. united nations general assembly. A flurry of spankings, handshakes, and mutual flattery between the two sides soon gave way to the US Treasury. Secretary Scott Bessent Pledged a $20 billion lifeline to Argentina.
The market cheered and investors breathed a sigh of relief.
timing is everything
In the days that followed, Argentina’s Economy Minister Luis Caputo spent hours in meetings in Washington trying to get a deal done.
Relief came last Thursday when Bessent announced that the United States would allow Argentina to exchange up to $20 billion worth of pesos for equivalent dollars. Bessent said the success of Milay’s program was “systemically important,” adding that the U.S. Treasury Department directly purchased an unspecified amount of pesos.
The timing was tricky for the Trump administration, as it struggles to manage the optics of bailing out the crisis. 9 consecutive defaulters in the middle of america Government shutdown led to mass layoffs.
But for Argentina, it happened in the nick of time.
recognizes how a weak currency could threaten his country The main achievement was to reduce inflation. Milley wants to hold off the currency devaluation that many economists see as inevitable until after the Oct. 26 midterm elections.
a devaluation of the peso It will likely encourage a resurgence of inflation.
“Milay is now going to the United States in a desperate situation,” said Marcelo J. Garcia, political analyst and director of the Americas for political risk consultancy Horizon Engage.
“He needs to reproduce market expectations and show that his program is sustainable,” Garcia added. “The government is trying to buy time until the midterm elections without making major course changes such as devaluing or floating the peso.”
no strings attached
Milley was hesitant when asked for details about her meeting with President Trump, scheduled for later Tuesday. He will meet with the U.S. president for two hours, then have a working lunch with other senior administration officials, officials said.
Another topic expected to come up at the Trump-Milay meeting is the Stargate plan to expand a network of large-scale artificial intelligence centers into Latin America, according to people familiar with the plan who requested anonymity to discuss private discussions.
Argentina could be home to Latin America’s first Stargate, a joint initiative between OpenAI, Oracle and SoftBank that will create a network of large-scale data centers to power OpenAI’s artificial intelligence technology. It’s an initiative that Trump himself supports.
He was also scheduled to attend a commemorative ceremony at the White House. Charlie Kirk, prominent right-wing political activist He was shot and killed last month. Millais often passed Kirk at lectures on the dominant global right.
“We don’t have a single-issue agenda; rather, we have a multi-issue agenda,” Millay told Buenos Aires’ El Observador radio on Monday. “Those that have already been finalized will be announced, while those that still need to be finalized will remain on hold.”
It’s unclear what terms the Trump administration is attaching to the currency swap deal, but Democratic lawmakers and other critics have decried it as an example of Trump rewarding supporters at the expense of American taxpayers.
There’s no word on how Argentina, the IMF’s biggest debtor, will ultimately repay the $20 billion to the United States. In addition to the IMF’s own loans Same amount for April. And it came on top Previous IMF loan of $40 billion.
Despite all the support, the Millais government has already fallen short of the IMF’s initial goal of rebuilding foreign exchange reserves.
“The United States should be concerned that Argentina received $14 billion upfront from the IMF and now has to return $20 billion so quickly,” said Brad Setzer, a former Treasury official now at the Council on Foreign Relations.
He added: “I am concerned that this is only a short-term bridge and that Argentina will not be equipped to deal with the problem.”
However, in a radio interview before boarding the plane, Millay had a cheerful expression on her face. He waxed poetic about Argentina’s economic potential, waxing passionate about how U.S. aid was saving Argentina from a “local franchise of 21st century socialism.”
“There’s going to be an avalanche of dollars,” Millay said. “You’re going to have money flowing out of your ears.”
—
Debre reported from Buenos Aires, Argentina.
