In a significant endorsement of Argentina’s economic trajectory, U.S. Treasury Secretary Scott Bessent lauded President Javier Milei’s reform agenda, asserting that Argentina serves as a commendable example of fiscal and monetary discipline. Speaking at an event organized by the Institute of International Finance (IIF) in Washington, D.C., Bessent emphasized the country’s progress in meeting financial benchmarks and advocated for continued support from the International Monetary Fund (IMF)

“Argentina is a good example. I was in Argentina earlier this month to demonstrate U.S. support for the IMF’s efforts to assist the country in its financial restructuring. Argentina deserves the IMF’s support because it is making real progress in meeting financial parameters,” Bessent stated.

Bessent highlighted the Argentine government’s implementation of three critical adjustments: significant fiscal consolidation, monetary tightening, and a recent exchange rate correction. These measures, he noted, are pivotal in steering the nation away from economic instability. The IMF has allocated $20 billion to Argentina, complemented by $12 billion from the World Bank, underscoring international confidence in the country’s reform path.

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In a gesture of potential further support, Bessent indicated that the U.S. is prepared to offer a credit line to Argentina through the Exchange Stabilization Fund (ESF) should a global economic shock threaten the nation’s financial recovery. This contingency plan underscores the strategic partnership between the two countries and the U.S.’s commitment to Argentina’s economic stability.

The announcement had an immediate positive impact on financial markets. Argentine sovereign bonds and the stock market experienced upticks, reflecting investor optimism. However, the foreign exchange market saw increased demand for dollars, with the informal “blue” dollar rate rising by 3% to ARS 1,185.

Bessent also addressed Argentina’s $18 billion currency swap agreement with the People’s Bank of China, noting that $5 billion remains pending. He expressed confidence that, as Argentina continues its steadfast economic policies, it will generate sufficient foreign currency inflows to meet its obligations. ​

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