After Javier Milei’s election victory in Argentina, praise also came from Washington. President Trump called the result a “major victory”, not only for Milei itself, but also for the American economy.
Argentina votes for Milei reforms
Argentine President Javier Milei won a convincing victory during the mid-term parliamentary elections. His party La Libertad Avanza received about 40 percent of the votes, compared to 24 percent for the largest opposition party, according to local media.
Who is Javier Milei?
Javier Milei is an Argentine economist who was elected president in 2023 with radical liberal views. He became widely known for his harsh criticism of the political elite and promised major reforms to the economy, which was in deep crisis at the time. Milei advocates less government influence, abolishing the central bank and introducing the dollar as the national currency.
The midterm legislative elections in Argentina are official legislative elections that take place halfway through the president’s term of office. Half of the seats in the Chamber of Deputies and a third of the Senate seats will be redistributed. At the same time, these elections serve as an indicator of public confidence in the government.
The results were also followed with great interest in the United States. The Trump administration is considered an outspoken ally of Milei. Finance Minister Scott Bessent previously launched a series of unusual interventions to support the Argentine economy, which has been struggling with years of inflation.
Washington, among other things, bought more than 1 billion dollars worth of Argentine pesos in an attempt to stabilize the currency. In addition, Bessent entered into a $20 billion currency swap with the Argentine central bank, a rare arrangement in which dollars were exchanged directly for pesos, without the involvement of the US central bank.
Bessent called Argentina an important ally on X and described the outcome as a clear mandate for reforms towards economic freedom and private investment. According to him, the relationship between the US and Argentina is stronger than ever under Trump.
US financial gamble
America’s intervention now appears to be paying off. Argentine government bonds and the peso have risen sharply in value since the election results. Trump said Monday aboard Air Force One: “That was a big victory. Not only did he win, he won by a landslide.” Then he added: “The US has made a lot of money from it. Bonds have gone up, the whole credit rating has improved.”
The victory gives Milei the much-needed political boost, but does not solve Argentina’s structural problems. The country is still struggling with a sky-high debt burden, including around $55 billion in loans from the International Monetary Fund (IMF).
Source: https://newsbit.nl/trump-prijst-mileis-overwinning-de-vs-heeft-er-veel-geld-aan-verdiend/
