Trump compliments Milei, promises helps Argentina and weight values ​​the dollar

Donald Trump greets Javier Milei during a meeting at the 80th United Nations General Assembly in New York. Reuters President Donald Trump said on Tuesday that the United States are willing to help Argentina’s economy if necessary, although it assists that the country does not need a rescue. Trump spoke to journalists alongside Argentine President Javier Milei, in a backstage meeting of the UN General Assembly. In addition to expressing support, he presented Milei, made compliments and promised total support to his reelection. 📱 Bake the G1 app to see real-time news and for free the meeting took place one day after US Treasury Secretary Scott Bessent to say that all alternatives were being considered to stabilize the South American country. Management Milei faces a strong political crisis, with negative effects on the country’s economy. (Read below) After the meeting between the two leaders, the Argentine weight advanced more than 3% against the dollar, quoted at 1,367.51. S&P Merval, the country’s main stock rate, rose 0.24%. “Let’s help them. I don’t think they need a ransom,” Trump told Reporters in New York. “Scott is working with their country to get good debts and everything necessary to make Argentina big again,” he added. The US president also declared support for Milei’s reelection, saying that the Argentine leader needs another term “to complete the work.” Asked about more details about US efforts, Trump said: “We are giving the Argentine president our full support and endorsement.” Javier Milei reacts to Trump’s ‘gift’: a post made by the US president in the social Truth, praising the Argentine leader. Reuters present unusual during the meeting, Trump handed Milei a printed version of a post he himself published on the Social Truth, which praises the Argentine leader. The publication had been done shortly before the meeting. Milei received the gift and posed smiling at photos. In the document, Trump states that Milei “proved to be a truly fantastic and powerful leader for the great Argentine people, advancing at all levels at record speed.” “He inherited a ‘total mess’, with horrible inflation caused by the previous radical left president (much like Croked Joe Biden, the worst president of our nation’s history), but managed to return stability to Argentina’s economy and raise her to a new level of prominent and respect!” In the text, Trump also says he has “a tremendous relationship with Argentina, who became a strong ally, thanks to President Milei.” And he adds: “I look forward to working closely with him so that our countries can continue on their amazing ways of success.” Trump presented Milei with the printed version of a post that declares support to Argentine President Evan Vucci/AP support from the World Bank separately, the World Bank reported on Tuesday that it will accelerate its $ 12 billion support plan to Argentina, allocating up to $ 4 billion in the coming months through public sector financing and private sector investments. The development bank stated in a statement that the package will support Argentina’s reform process and its long -term growth strategy. There is still no clarity on the speed of release of resources. “The package will focus on key engines of competitiveness: unlocking of mining and strategic minerals, impulse to tourism as a source of jobs and local development; expansion of access to energy; and strengthening of supply chains and financing small and medium enterprises,” the World Bank said. The reaction of markets Argentine actives had already recorded a strong discharge the day before after the promise of Bessent support for the Milei government. The S&P Merval index advanced more than 7% on Monday, while weight rose almost 5% and international dollar titles also had gains. In recent weeks, however, Argentine markets have recorded strong losses. International titles retreated more than 20% in the year, and the weight touched the lower limit of the currency band established months ago. The situation made the Central Bank of Argentina make, on Friday (19), its largest daily sale of dollars in almost six years. The measure was part of the continuous use of reserves to support the weight in the face of the strong demand of cautious investors with political instability in the country. At the time, the bank intervention totaled US $ 678 million, the largest in a single day since October 2019, raising the total sold between Wednesday and Friday to $ 1.1 billion. The Central Bank had not conducted interventions since mid -April, after an agreement of $ 20 billion with the International Monetary Fund (IMF), which initially relaxed the currency restrictions. Experts warn that continuous sales of dollars can accelerate reserves’ exhaustion, compromise short -term debt payments and lead to increased title issuance to supply financing gaps – generating more debt. Argentine President Javier Milei and his sister Karina Milei. GUSTAVO GARELLO/ AP Photo Political Crisis The economic scenario worsened after allegations of corruption involving Karina Milei, sister of the president and secretary general of the presidency. The case, which collaborated with the unexpected defeat in Buenos Aires elections, increased doubts about his ability to conduct the economy. In hollow audios, Diego Spagnuolo, former head of the National Agency for Disability (andis), accuses Karina and Undersecretary Eduardo “Lule” Menem of having demanded bribes from pharmaceutical industries for the purchase of drugs for public network. Bradesco BBI’s recent report analyzes that political scandals like this “fragment the scenario, undermining reputation and confidence.” It also says that the “loss of influence in Congress leads to an unplanned fiscal expansion, in conflict with the goals of the IMF.” In practice, when foreign investors withdraw resources, there are less dollars in circulation, which increases the demand for US currency over weight. This causes the weight to lose value, as the exchange rate now reflects a scarce currency in the face of the existing demand.

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