Argentina President Praises Donald Trump For Saving World From "Catastrophe"

Argentina President Praises Donald Trump For Saving World From "Catastrophe"

Argentina's Central Bank stepped in last week to halt a peso decline amid growing investor concerns.

On Wednesday, Argentine President Javier Milei commended his important ally Donald Trump for protecting both the United States and the global community from "catastrophe," specifically highlighting the US president's policies on immigration and trade.

"We are not...the only ones implementing the challenging decisions required by this historic moment," the conservative leader stated during his address to the UN General Assembly.

"President Trump, in the United States, also recognizes that it's necessary to change a trajectory that was guiding the United States toward catastrophe, and we understand that a catastrophe affecting the United States represents a global catastrophe," Milei remarked.

His speech coincided with Washington's announcement that negotiations were underway with Argentina regarding a $20-billion swap line intended to reassure financial markets before the October mid-term elections.

Last week, Argentina's Central Bank took action to stop a run on the peso, as investors worried that Milei's defeat in the mid-terms could impede his austerity program.

Following discussions between Milei and Trump on Tuesday alongside the UN General Assembly, US Treasury Secretary Scott Bessent revealed several initiatives to support one of Washington's principal allies in Latin America.

In addition to a $20 billion swap line, he indicated the Treasury was prepared to acquire Argentine dollar-denominated bonds and provide "stand-by credit."

Swap lines typically involve agreements between two central banks to exchange their currencies at a predetermined rate for a specific duration.

However, it remains uncertain whether the discussions with Argentina include the Federal Reserve.

Milei, who has implemented dramatic austerity measures to control inflation and achieve balanced budgets, enters the upcoming legislative elections in a weakened position following his poor performance in recent Buenos Aires provincial polls.