President Javier Milei visits the White House on Tuesday, banking on a high-profile show of political and economic support from his US ally President Donald Trump ahead of key midterm elections.
With Argentina struggling to stave off yet another financial crisis and Milei's disapproval ratings rising, the libertarian firebrand is seeking help from his powerful friend in Washington.
Trump's administration has already promised US$20-billion to prop up Argentina's economy and repeatedly voiced political support for Milei.
But it has not been a silver bullet to calm markets or improve the La Libertad Avanza leader’s polling ahead of the October 26 elections.
Their results will dictate whether Milei can pass tough additional cost-cutting reforms or face a legislative brick wall for the next two years of his term.
About half the seats in the Chamber of Deputies are up for grabs, and a third of those in the Senate.
In recent weeks, Argentina has had to spend more than a billion US dollars to defend the peso, a strategy most economists believe is unsustainable. That prompted Milei's allies in Washington to step in with a financial bailout.
"Argentina faces a moment of acute illiquidity," said US Treasury Scott Bessent, announcing a currency swap deal that would give Argentina access to US$20 billion.
"The US Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets."
‘True ally’
The announcement has sparked a rally in Argentine bonds and stocks and helped ease pressure on the peso.
It also marked a rare instance of direct US intervention in Latin American currency markets, underscoring Washington's strategic interest in Milei's success.
"The United States saw this attack on Argentina, on the ideas of freedom, on a strategic ally – and that's why they supported us," Milei said in a radio interview Monday.
"They know we are a true ally," Milei said, referring to Argentina's alignment with US and Israeli interests.
Milei will be meeting Trump just a day after the US president made a lightning visit to Israel and Egypt, where he revealed in praise for his ceasefire plan in Gaza, hours after Hamas released hostages in exchange for prisoners.
Trump addressed the Knesset, Israel’s Parliament, before flying to Egypt for a Gaza summit where he and the leaders of Egypt, Qatar and Turkey signed the declaration as guarantors to the Gaza deal.
Milei hailed Trump on Monday on social media. "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,” wrote the President.
"Thank you, President Trump. Your commitment to life, liberty and peace has restored hope to the world," he continued.
"It is an honour to consider you not only an ally in the defence of these values, but also a dear friend and an example of leadership that inspires all of us who believe in freedom."
‘Fantastic job’
During a recent meeting, Trump said that Milei was doing a "fantastic job."
"He, like us, inherited a mess, and what he's done to fix it is good," Trump said during a meeting on the sidelines of the United Nations General Assembly. "We're backing him 100 percent."
In Argentina, there has been fevered speculation about what Trump might want from Milei in return for his support.
Before Milei took power, Argentina – a major lithium producer – had been deepening ties with China.
Milei’s office said the leaders would discuss "multiple topics."
"Those issues that have already been finalised by the time of the meeting will be announced, and those that still need to be finalised will remain pending," read a statement.
On Sunday, Economy Minister Luis Caputo ruled out immediate plans to dollarise the economy or alter the floating exchange rate band, amid speculation of post-election changes.
"The United States is willing to keep buying pesos," he said.
Argentina’s economic team remains tight-lipped but Caputo hinted strongly that further assistance will be forthcoming.
"There will likely be an announcement on Tuesday," Caputo said in an interview.
Several government officials have denied reports that the US has asked Argentina to end its existing US$18-billion currency swap with China’s Central Bank, which was renewed last year.
"I don't think part of the agreement is to exclude China from Argentina," Cabinet Chief Guillermo Francos said last Friday.
Bessent, however, said in an interview with Fox News that Milei is committed to removing China from the country, a claim which sparked reaction from the the Chinese Embassy in Buenos Aires, which accused the US of "acts of hegemony and bullying.”
– TIMES/AFP/NA
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