The announcement of the approval of Argentina’s new agreement with the International Monetary Fund (IMF) came with a blemish — March’s consumer price index (CPI) showed an inflation rate of 3.7 percent, the highest figure in many months under the La Libertad Avanza administration to date.
Javier Milei arrived at the Casa Rosada at 3.40pm Friday, after calling a meeting with his Cabinet members to signal support for the agreement, which was set to be ratified by the IMF board. The President was already aware that the inflation figure would be poor.
That is why both the Casa Rosada and the President greeted the board's ratification of the deal with euphoria and relief. Faced with an increasingly complex domestic outlook — rising inflation and a shortage of foreign currency hitting Central Bank (BCRA) reserves — Milei’s government gained some breathing room through its ties with Donald Trump.
At home, uncertainty continues to grow both economically and politically.
Trump’s strong backing of Milei was reflected in the support and ratification of Argentina’s extended fund facility (EFF) agreement. That support had come into question following the President’s aborted trip to Mar-a-Lago, Trump’s resort/residence in Florida, which saw irritation from both Milei and his sister, Presidential Chief-of-Staff Karina Milei, focused on Foreign Minister Gerardo Werthein.
Another major gesture of support from the Trump administration is the upcoming visit of US Treasury Secretary Scott Bessent, who is scheduled to arrive in Argentina on Monday.
Government sources suggest that Bessent himself initiated the meeting. He knows Economy Minister Luis ‘Toto’ Caputo from the financial world and is considered “a markets man.” This will be the first time in history that a US Treasury secretary visits Argentina.
Officials at the Casa Rosada believe the talks could lead to a new tariff scheme within a few months — it is one of the key topics expected to be discussed on Monday. Milei and Caputo will receive Bessent at the presidential palace amid the global storm unleashed by Trump’s trade war with China.
A joint statement by both economy figureheads is expected afterward in the press briefing room. “Argentina and Trump have decided to become strategic partners,” officials at the Casa Rosada repeatedly say in the corridors of power.
The support President Milei has garnered from the Trump administration stands in stark contrast to the mounting challenges on the home front.
Despite the flurry of figures Milei and his officials regularly publish on social media, the Casa Rosada acknowledges that the economy has yet to take off. Sources admit that the positive indicators reported by the INDEC national statistics bureau have not translated into real-world improvement — though they continue to insist that the chosen path is the right one, and that they are putting “20 years of Kirchnerism” behind us.
On Fritday, INDEC released a red-hot inflation figure (even as the current methods of measuring inflation are outdated). Officials admit the CPI methodology no longer reflects the present-day consumer basket. The decision to maintain the existing mechanism is not only economic but also political: it allows for comparisons with the Peronist administration of former president Alberto Fernández.
On the political front, tensions are on the rise. As Congress continues to investigate the ‘$LIBRA’ cryptocurrency case, prosecutor Eduardo Taiana has requested the lifting of banking secrecy on the Milei siblings’ accounts — a move that could spell further trouble for the President and his chief-of-staff.
The formation of a congressional investigative committee would not have been possible without the support of governors such as Raúl Jalil (Catamarca), Martín Llaryora (Córdoba) and Nacho Torres (Chubut), who “bared their teeth” in Congress after having previously played the role of allies.
It was also notable that the ruling party decided to cancel the session called for the ‘Ficha Limpia’ anti-graft initiative, likely avoiding another defeat.
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