Argentine President Javier Milei travels to New York this week for essential conferences with Donald Trump and Benjamin Netanyahu, as his authorities confronts mounting monetary pressures following a major electoral setback.
The conferences happen as Argentina faces $9.5 billion in debt funds via 2026, beginning with $4 billion due in January. The central financial institution has bought $1.1 billion in reserves over three buying and selling classes to help the peso, which reached 1,474 per greenback.
Milei confirmed his administration is in superior negotiations with the US Treasury for monetary help via the Exchange Stabilization Fund. This emergency mechanism was final utilized in 1995 when the United States supplied Mexico with $20 billion throughout its peso disaster.
The diplomatic push follows Milei’s La Libertad Avanza celebration receiving 33.8% of votes in Buenos Aires province elections on September 7, in comparison with 47% for the Peronist opposition. This 13-point margin in Argentina’s most populous province triggered fast market reactions.
The peso declined 5%, the primary inventory index dropped 10.5%, and nation danger exceeded 1,400 foundation factors after the election. Argentina’s inventory market has turn into among the many world’s worst performers this 12 months, falling roughly 50% in greenback phrases.
Argentina’s President Bets on Trump-Netanyahu Alliance as $9.5 Billion Debt Payment Looms
Despite electoral setbacks, the federal government’s financial program has delivered spectacular outcomes. Monthly inflation plummeted from peaks of 25% to 1.5% by May 2025. Most considerably, poverty fell dramatically from 52.9% in early 2024 to 31.2% within the second quarter of 2025, with 1.7 million kids lifted out of poverty.
Unemployment peaked at 7.9% within the first quarter earlier than declining to 7.6%. The financial system achieved its first finances surplus in over a decade after Milei decreased public sector employment by 30,000 positions.
Milei’s assembly with Netanyahu displays Argentina’s overseas coverage realignment, together with plans to relocate the embassy from Tel Aviv to Jerusalem in 2026. Argentina has aligned its UN voting with US and Israeli positions.
The October 26 congressional elections will check public help for Milei’s insurance policies as Argentina seeks worldwide backing to finish its financial transformation.
