"The administration of United States President Donald Trump has purchased Argentinian pesos and finalised a $20bn currency swap framework with Argentina's central bank in a deal aimed at shoring up the country's faltering finances. Treasury Secretary Scott Bessent announced the deal on X on Thursday, saying, Argentina faces a moment of acute illiquidity. The international community including [the International Monetary Fund] is unified behind Argentina and its prudent fiscal strategy, but only the United States can act swiftly. And act we will."
"Bessent's comments come after four days of meetings with his Argentinian counterpart, Luis Caputo, who expressed his deepest gratitude to Bessent on X after the deal was announced. The support comes as Argentina's right-wing President Javier Milei, a close ally of Trump, has been struggling with financial market turbulence. Argentinian bond prices plunged sharply at the end of September, as investors watched the country's central bank rapidly burn through its scant foreign currency reserves to defend the falling peso."
"In early October, the currency fell by more than 6 percent its biggest drop within a single day since September 8, forcing the government to sell yet more dollars in the spot market to shore it back up. While Trump's administration has insisted this programme is not a bailout, US farmers and Democratic lawmakers have criticised the deal as just that, saying it's helping a country that has benefitted from sales of soya beans to China, to the detriment of US farmers."
The United States purchased Argentinian pesos and finalised a $20bn currency swap framework with Argentina's central bank to shore up faltering finances. Treasury Secretary Scott Bessent announced the deal on X and said Argentina faces a moment of acute illiquidity. The international community including [the International Monetary Fund] is unified behind Argentina's fiscal strategy. Bessent met for four days with Argentinian counterpart Luis Caputo, who expressed gratitude. President Javier Milei has faced market turbulence, with bond prices plunging as the central bank burned reserves to defend the falling peso. In early October the currency fell over 6 percent, forcing more dollar sales. Critics called the programme a bailout and senators introduced the No Argentina Bailout Act.
Read at www.aljazeera.com
Unable to calculate read time
Collection
[
|
...
]