The US Treasury announced last Thursday that it had intervened<\/a> to prop up Argentina\u2019s peso and sealed a $20bn swap line to give its cash-strapped central bank access to dollars. The aid has defused a market crisis that had threatened to cause political damage to Milei<\/a>, Trump\u2019s strongest ideological ally in Latin America.<\/p>\n Argentina<\/a> will hold legislative elections on October 26 when Milei\u2019s La Libertad Avanza party will try to expand its minority share of congressional seats. The next presidential election in Argentina is in 2027. The White House did not immediately respond to a request for comment on which vote Trump was referring to.<\/p>\n In a post on Truth Social after the meeting, President Trump added: \u201cI hope the people of Argentina understand how good a job he is doing, and will support his work during the upcoming Midterms, so we can continue to help him achieve Argentina\u2019s incredible potential. Javier Milei has my Complete and Total Endorsement.\u201d<\/p>\n The price of Argentina\u2019s US dollar bonds maturing in 2035 fell by almost 4 cents on Tuesday to 57 cents on the dollar, or a yield of about 14.2 per cent.<\/p>\n US Treasury secretary Scott Bessent said at Tuesday\u2019s meeting that he was \u201cconfident\u201d that Milei\u2019s libertarian party will do well in the October 26 polls. <\/p>\n \u201cThis aid is predicated on robust policies and going back to the failed Peronist policies will cause a US rethink,\u201d he said, referring to Argentina\u2019s main left-leaning Peronist opposition movement.\u00a0<\/p>\n Milei\u2019s pro-business government fell into a political crisis last month after a shock landslide loss<\/a> to the Peronists at local elections in Buenos Aires province, where almost 40 per cent of Argentines live. <\/p>\n The defeat triggered a run on the peso, forcing the government to burn through scarce foreign exchange reserves. Before the US intervention last week, economists had warned the government might be forced to sharply devalue the peso from its fixed exchange rate band before the midterms.<\/p>\n Milei is hoping to improve on his 34 per cent vote share from Buenos Aires province at the national polls. Pollsters predict he will win a vote share ranging from the low to high 30s.<\/p>\n Recommended<\/p>\n
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