The US Treasury Secretary confirmed the exchange of currencies and described the bailout as “of strategic interest.” He sent a message to the Americans.
The Secretary of the Treasury of the USA confirmed the signature of a economic stabilization agreement between the United States Treasury Department and the Central Bank (BCRA)in support of the reform program promoted by the government of Javier Milei. He did it through a new tweet published in the premarket. The framework operation for the swap of currencies had been announced this Monday by the BCRA.
In an official statement, the White House highlighted that the measure is part of the strategy of the Republican administration of “secure and stabilize the Western Hemisphere”in line with the agenda of America First and the “Make America Safe Again” initiative.
“President Milei is working hard to reverse decades of decline caused by the left-wing radicalism of the Peronists,” said the message broadcast from the official White House account. “Argentina now has the opportunity to embrace economic freedom, and our stabilization agreement is a bridge to a better economic future, not a rescue,” he emphasized.
The US government also stressed that Argentina’s stability is of “strategic interest” for Washingtonarguing that “we do not want another failed state in Latin America. A strong and stable Argentina, as a good neighbor, is fundamental for the security and prosperity of the region.”
Finally, the message highlighted that “President Trump is leading the way in the Western Hemisphere” and that its administration “fully supports President Milei’s reforms and prudent fiscal strategy to make Argentina great again” (Make Argentina Great Again).
On the other hand, he highlighted the achievements of the Trump administration, in a message to Americans who are critical of support for Argentina: “Donald Trump has already provided more than $2 trillion in tax cuts for middle-class Americans, lower taxes and less bureaucracy for small businesses, and strength on the world stage to counter our adversaries and support our allies.”
Swap between the US and Argentina: the keys to the agreement and the technical information that will be kept secret
He Central Bank (BCRA) announced the closing of the currency swap with the US Treasury by US$20,000 million for the “exchange stabilization” with the aim of preserve price stability and promote sustainable economic growth.
“The economic clauses of the agreement will be confidential”according to sources from the monetary authority Scopewho also gave details about the operation of the swap and the differences with the old currency agreement with China.
Regarding the possible impact on the BCRA’s international reserves, they anticipated that it will occur only once each of the swap tranches is activated. “Currently, the BCRA has a solid balance sheet with ample liquidity and the disbursements of each tranche will be determined according to the needs that the BCRA has in the future,” they highlighted.
Source: Ambito
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