Swap lines are transactions in which two central banks agree to swap their currencies at a set exchange rate for a specified period.<\/p>\n
The Argentine peso has been falling sharply since Milei\u2019s party was beaten by the centre-left Peronist movement in a Buenos Aires provincial election on September 7.<\/p>\n
The vote was seen as a litmus test for national legislative elections scheduled for October 26.<\/p>\n
Bessent wrote that Argentina \u201cis a systemically important US ally in Latin America\u201d and Washington was confident Milei\u2019s \u201csupport for fiscal discipline and pro-growth reforms are necessary to break Argentina\u2019s long history of decline\u201d.<\/p>\n
\u201cOpportunities for private investment remain expansive, and Argentina will be Great Again,\u201d he added.<\/p>\n
Milei thanked Washington for its \u201cunconditional support for the Argentine people\u201d.<\/p>\n
The budget-slashing libertarian wrote on X that \u201cthose of us who defend the ideas of freedom must work together\u201d.<\/p>\n
International Monetary Fund head Kristalina Georgieva also welcomed Bessent\u2019s statement and underscored \u201cthe crucial role of partners in promoting strong policies for stabilisation and growth for the benefit of the people of Argentina\u201d.<\/p>\n
\u2018Working on it\u2019<\/p>\n
Argentina\u2019s Foreign Minister Gerardo Werthein, meanwhile, said \u201cthere has been much speculation\u201d on a possible Treasury loan, \u201cwith amounts of US$30 billion mentioned, which is absolutely incorrect…\u201d<\/p>\n
He told Radio Mitre it was true that \u201cwe are working on it, but for a much smaller amount\u201d.<\/p>\n
The US in April backed an agreement Argentina struck with the International Monetary Fund for a loan of US$20b, as well as US$12b from the World Bank and another US$10b from the Inter-American Development Bank.<\/p>\n
Bessent at the time poured cold water on the idea of a direct credit line from the US.<\/p>\n
Argentina, which has a track record of economic crises and hyperinflation, is the IMF\u2019s biggest debtor.<\/p>\n
It borrowed US$44b from the IMF in 2018 \u2013 the lender\u2019s biggest-ever loan \u2013 and has since renegotiated repayment terms.<\/p>\n
The Government in Buenos Aires said that it would suspend taxes on grain and meat exports until October 31 as part of efforts to boost the economy.<\/p>\n
The objective was to \u201cgenerate a greater supply of dollars\u201d, presidential spokesman Manuel Adorni said on X.<\/p>\n
Reducing taxes should make grain cheaper on the global market, boosting sales.<\/p>\n
Nicolas Pino, president of the SRA agricultural producers\u2019 association, said the tax should be permanently scrapped for Argentina\u2019s biggest export sector.<\/p>\n
Financial markets reacted to today\u2019s developments with a rise in Argentine bonds and shares on Wall Street and in Buenos Aires, as well as a significant strengthening of the peso.<\/p>\n
-Agence France-Presse<\/p>\n","protected":false},"excerpt":{"rendered":"Swap lines are transactions in which two central banks agree to swap their currencies at a set exchange…\n","protected":false},"author":2,"featured_media":37624,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[74,34591,8018,34593,806,34595,138,34596,10668,219,1644,2082,34594,34597,34590,18060,220,34241,34589,23362,111,139,69,90,34243,2572,34592,8145,3048,27950,9939,17218,1886,1361,223,1865,25187,9938,3040,6923],"class_list":["post-37623","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-after","tag-ally","tag-argentina","tag-argentinas","tag-as","tag-battles","tag-business","tag-calm","tag-economic","tag-economy","tag-financial","tag-for","tag-javier","tag-jittery","tag-lifeline","tag-loan","tag-markets","tag-milei","tag-mulls","tag-needed","tag-new-zealand","tag-newzealand","tag-nz","tag-on","tag-peso","tag-president","tag-ready","tag-run","tag-said","tag-seeks","tag-states","tag-stood","tag-support","tag-that","tag-the","tag-today","tag-treasury","tag-united","tag-us","tag-what"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/37623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=37623"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/37623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/37624"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=37623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=37623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=37623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}