Almost a week ago, in front of the cameras, the president of the president Javier Milei next to his American pair Donald Trump In New York he toured media and networks in a matter of hours. Although the meeting lasted just twenty minutes to exchange ideas about the economic scenario and foreign policy, the Republican gave him the copy of a message of his in Social truthwhere he praises him openly and gives him political support.
A few days ago a second recording was viral before starting the meeting between the two leaders, in which the Argentine is observed to take the “supposed gift” so that the meeting later began, it can be understood that it was a gift by the White House. The images of this fact leave the libertarian president in his intentions to give a reassuring message about the type of link he maintains with the US head of state.
The Buenos Aires defeat of September 7 and the expectations of a decline in the political cycle of the national government ended in the loss of reserves that threatened to empty how little it was left. The aggravated economic dynamics could not be remedied by the IMF, so it was evaluated that the same treasure of the United States is the last instance lender in exchange for certain conditions.
The immediate need for liquidity and political support to sustain the economic plan, before a recent wave of financial tension and an electoral setback, alarmed the markets. The official mission was to negotiate with the US Secretary of the North American Treasury the concrete mechanisms that stabilize the weight and Argentine assets while the State advances with its reform agenda.
In technical and precise terms, the application had these main axes: a currency swap line (reports indicate negotiations around a line for about US $ 20,000 million) that would allow the Central Bank to have dollars to avoid a messy depreciation; Purchase of Argentine debt in secondary markets by treasure agencies or with American support, which would inject demand and raise bond prices; and use instruments such as Exchange Stabilization Fund or temporary facilities to offer a “backstop” liquidity while the situation is normalized. These measures were announced or described by officials and analysts in the sources that covered the tour.
The secretary of the US Treasury, Scott Besent, He declared that the United States “would do what is necessary” to support Argentina and avoided closing the door to temporary interventions to contain market volatility, which was interpreted as a technical and political support that sought to stop the run on the weight. That statement worked immediately as an anchor for Argentine markets.
In the days before the trip, a combination of factors strongly pressed the exchange rate and the price of Argentine assets. The Milei administration sought in Washington not only concrete dollars, but a sign that there is an international institutional support that reduces the risk premium and allows economic reforms to continue its course without an immediate financial collapse.
But the mechanisms offered by treasure are usually temporary and, according to published analysis, US support could be subject to certain political or technical demands – for example, reduce Swaps dependence with China or coordinate closely with the International Monetary Fund – so that the rescue works as a bridge and not as a permanent solution. Several media also warn that the intervention of Washington has a political component: to help preserve an economic program that, from the US optics, favors regional stability and protects investments.
Milei sought the Treasury was a combination of temporary liquidity, purchases of assets to restore prices and, above all, a public guarantee that calms investors and depositors. The gesture of political support with the photo along with the “alleged presidential gift”, in which he mentions the praise of the American leader to his Argentine pair, does not leave the libertarian government well stopped, since the “all march according to the plan” does not seem to be working.
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