The British newspaper was critical of the Trump administration’s rescue plan and questioned its effectiveness.
The Financial Times stated that the financial bailout of Argentina is a form of “financial imperialism” by the US in the region and warned about the geopolitical risk posed by the interference of the US Treasury in the local exchange market.
Likewise, the British newspaper highlights that The North American nation’s plan to “make Argentina great again” through financial aid that includes a swap line of about US$20 billion could result in failure due to three major risks: the criticism that the aid receives from Trump’s own supporters, the use of the dollar as a “diplomatic weapon” and the credibility of the US Treasury Secretary himself, Scott Bessent.
For the media, the Argentine market discounts a depreciation of the peso after the legislative elections on Sunday the 26thwith a weak reserve outlook on the part of the Central Bank (BCRA) to defend the exchange rate, despite the fact that the Government trusts that the hand provided by the US will go beyond the electoral result.
Kristalina Georgieva Scott Bessent Luis Caputo
It is that, in the USA, They are not convinced that Javier Milei can effectively avoid a new financial crisisdespite the American package and high advance loan granted by the International Monetary Fund (IMF) a few months ago, with an initial disbursement of US$12 million.
“The hegemonic power of the US today is based on geofinance”
On the other hand, They highlighted that the hegemonic power of the United States is no longer based on manufacturing supply chains as it once did.but relies on “geofinance” and the use of the dollar as a political instrument to influence globally.
“When the Federal Reserve (Fed) offered temporary swap lines to emerging markets in the past, as happened during the 2008 financial crisis, it did so by evaluating their economic, not political, strength,” notes the Financial Times, alluding that in the Argentina the opposite happens: Bessent is politicizing swap lines through the Exchange Stabilization Fund (ESFfor its acronym in English).
“What is happening, in other words, is a blatant form of financial imperialism“says the newspaper, which fears that if the stabilization plan fails to change the financial course of Argentinathis no longer only harms Mileibut it could also have negative consequences for Washington.
Source: Ambito
