Trump Celebrates Milei’s Victory, Says It Made the U.S. ‘A Lot of Money’ After Dollar Plunges
The Facts:
President Trump celebrated the victory of La Libertad Avanza, the political party of President Javier Milei in Argentina, after the force scored a landslide victory that sets it as the second leading group in the country’s Congress.
Milei’s forces scored 41% of the popular vote, 13 out of 24 seats in the Senate, and 64 out of 127 in the Argentine Congress House. The outcome of the election has shot up the value of Argentine stocks while the country risk dropped, as Milei now has the political support to exert more changes expeditiously.
Answering questions from the press on Air Force One in Doha, Trump praised Milei’s achievement, claiming that it was a “big win.” “Not only did he win, he won by a lot,” Trump stated.
He declared:
That election made a lot of money for the United States. The bonds have gone up. The whole debt rating has gone up.
The statements come after the U.S. Treasury invested a still undisclosed amount in Argentine pesos to aid Milei in stabilizing the dollar-peso exchange rate.
Following La Libertad Avanza’s positive results, the exchange rate plunged over 10% on national cryptocurrency exchanges like Lemon, making the U.S. Treasury-owned pesos more valuable.
Why It Is Relevant:
Milei’s party’s advance is crucial for the country, as it secures an even playing field in Congress, where Milei had been battling to pass some of his landmark proposals. Still, he will have to leverage alliances with other forces to achieve a majority.
On the other hand, Trump and the U.S. Treasury’s support for maintaining a strong peso will continue because of Milei’s positive performance in the vote. Before, Trump had stressed that if Milei faltered, his administration would not “be generous” with Argentina.
Looking Forward:
While Argentina still faces headwinds, Milei’s advance in Congress has investors and citizens hopeful about the future of the country, given the open support of Trump to Milei’s policies, with the U.S. Treasury ready to bankroll these measures.
FAQ
- What recent political victory did President Javier Milei achieve?
Milei’s party, La Libertad Avanza, secured 41% of the popular vote, becoming the second leading group in Argentina’s Congress with significant seats in both the Senate and the House. - How has this victory impacted Argentina’s financial markets?
The election results led to a surge in Argentine stocks and a decline in country risk, as Milei gained the political backing needed for swift reforms. - What was President Trump’s response to Milei’s victory?
Trump hailed the victory as a “big win,” noting that it positively impacted U.S. investments and bonds related to Argentina’s economy. - What challenges does Milei face moving forward?
Despite the victory, Milei will need to build alliances with other political forces in Congress to achieve a stable majority for his proposed regulations.
