US Treasury Secretary Surprises the Market Again?

Due to losses in local elections, Argentine President Javier Milei is facing market skepticism, with an increasing number of investors moving capital out of Argentina. This has led to significant volatility in the country's stock and foreign exchange markets.

In recent weeks, the Central Bank of Argentina has intervened to prevent further depreciation of the Argentine peso. However, analysts note that the Argentine market will remain volatile ahead of the country's legislative elections in October, as investors continue to grapple with political uncertainty.

To stabilize the market, Argentina announced on Monday that it would reduce export tariffs on all grains, beef, and poultry products to zero until October 31. This move aims to attract more U.S. dollars and further stabilize the Argentine peso exchange rate.

Besant also pointed out that U.S. President Donald Trump will meet with Milei on Tuesday and announce further details of assistance plans after the meeting. He insisted that Milei's reforms in fiscal discipline and growth promotion are key to helping Argentina's economy escape long-term recession.

Milei, a libertarian economist and one of Trump's political allies, was elected President of Argentina in 2023. He pledged to control soaring inflation through significant spending cuts and other reforms.

These policies subsequently led to improvements in fiscal conditions and increased activity in capital markets. However, due to substantial cuts in social welfare, Milei's reforms have remained highly controversial in Argentine society.

More notably, Trump and his administration later adopted policy measures quite similar to Milei's. Trump himself has expressed admiration for Milei's reforms and cited them as an example. Thus, Milei's fiscal reforms can, to some extent, be seen as a mirror of U.S. government reforms.