The president of Argentina, Javier Milei, predicted on Monday an “avalanche” of dollars for Argentina in the coming years which will even “come out of their ears,” excited by the financial support that the United States gave him to face the liquidity problems of the South American nation in the midst of the electoral campaign for the legislative elections on October 26.
When “the recomposition of Congress is resolved and we advance in structural reforms, there will be a phenomenal increase in the income of Argentines,” the ultraliberal told the radio. The Observer.
Milei traveled to Washington this Monday where tomorrow he will have a bilateral meeting with US President Donald Trump, in which both are expected to finish polishing the details of a currency swap for 20 billion dollars from the US Treasury with the Central Bank of Argentina.
A swap is a financial agreement for the exchange of currencies and would be the first that the United States signs with Argentina.
The aid from the United States came after several weeks of strong volatility in the markets due to the growing doubts that arose around some aspects of Milei’s economic plan, such as its difficulty in securing dollar reserves, and the growing obstacles that the opposition places in Congress on the president’s adjustment plan.
In advance of the agreement with the United States, the Treasury intervened last Thursday in the exchange market of its South American ally with the purchase of an undetermined volume of Argentine pesos, which prevented a further depreciation of the local currency against the dollar.
“The United States perceived this attack against Argentina, against the ideas of freedom, against a strategic ally, and that is why it gave us support, what it ensures is that Argentina will not have liquidity problems; that is, if the market did not support the opening of the markets, Argentina will be able to count on financing from the United States to be able to offset the debt and we will remove the specter of default from the field,” Milei explained.
On Monday, the Argentine peso appreciated more than 5% in the exchange market with the dollar trading at 1,370 pesos per unit compared to the last day.
The fate of Milei’s free market policies will depend greatly on the role that the ruling party plays in the midterm elections on October 26, in which it will seek to increase its minority presence in Parliament to sustain its economic plan of strong adjustment and carry out the pending reforms.
With polls showing a sharp drop in his popular support, Milei proposed that the election will mark a watershed between Kirchnerism – in reference to the center-left Peronism that governed before coming to power at the end of 2023 – which “wants to be the Soviet Union of 1917” and its neoliberal economic program.
“Dollars are going to come out of our ears and when you have all those dollars, the services sector is going to expand strongly. We are facing a wonderful future but we have to make the decision to move forward,” said Milei.
With agency information.
Follow information about business and current events in Forbes Mexico
Do you like to get informed through Google News? Follow our Showcase to have the best stories
