Will Trump's $20 Billion Backing Help Milei Change Argentina's Fortunes?
Argentina has already spent over $50 billion in IMF funds. Despite assurances from U.S. officials, there is skepticism about Argentina's ability to achieve different results with this currency support.
The country has faced financial trouble this year, with improved fiscal accounts but deteriorated external accounts. The current account, which includes interest payments on foreign debt, has moved into a deficit.
The government has tried to keep the peso relatively strong to combat inflation, but this has required dipping into foreign exchange reserves. When these reserves became critically low, Argentina sought and obtained the ability to borrow foreign exchange reserves from the United States.
No direct quote available in the text.
Author's summary: Argentina faces financial challenges despite US backing.