Argentina’s economic crisis has taken center stage on the global financial stage once again, as the country’s peso continues to tumble despite a high-profile rescue package from the United States. The drama has unfolded in the run-up to crucial congressional elections, with President Javier Milei’s controversial libertarian economic program and the Trump administration’s unprecedented intervention at the heart of the storm.
On Friday, October 24, 2025, Argentina’s peso slipped another 0.4% against the U.S. dollar, trading near a staggering 1,492 pesos per dollar, according to reporting from multiple sources including Geopolitical Economy and Bloomberg. This marks a more than 40% plunge for the peso so far this year, an all-time low that has investors and ordinary Argentines alike on edge. The currency’s slide has persisted despite a $20 billion currency swap agreement announced by the Trump administration earlier in October—a move that briefly sparked a rally, only for the peso to quickly give up those gains and continue its downward spiral.
President Javier Milei, who swept to power in late 2023 on a wave of populist and libertarian promises, has found himself increasingly embattled. His government has been draining foreign-exchange reserves in a desperate attempt to defend the peso, while also seeking additional support from the International Monetary Fund (IMF). Yet, as Geopolitical Economy notes, Milei’s so-called “anarcho-capitalist” approach—which included abolishing over half of Argentina’s government ministries and slashing public spending—has not delivered the economic salvation many hoped for. Instead, it’s triggered a steep rise in poverty and unrest.
Official statistics published in 2024 revealed that 53% of Argentines were living in poverty, with 66% of children under 14 affected. The poverty rate soared by 11 percentage points in the first six months of Milei’s term—the largest jump in two decades. By 2025, Milei’s government claimed that poverty had fallen, but independent experts at the Pontifical Catholic University of Argentina questioned the accuracy of these figures, and a poll in early October found that nearly two-thirds of Argentines, 64.2%, did not believe the official data.
One of the key drivers of public discontent has been the collapse in real wages, which plummeted after the peso was devalued and inflation outpaced any increases in pay. The cost of living has soared, making Argentina the most expensive country in Latin America by 2025. Food insecurity has reached alarming levels, with 28% of people struggling to put enough food on the table and hunger at its highest in decades. Despite this, Milei has remained steadfast in his belief that government should not intervene, arguing that “people will simply work harder so they don’t die of hunger,” as cited by Geopolitical Economy.
Meanwhile, the financial markets have been anything but reassured. The Argentine stock market, which ballooned after Milei’s initial victory, has been in free fall throughout 2025. Foreign investors have been dumping Argentine government debt, and the bond market is in crisis. Wall Street economists, including Joseph Brusuelas of RSM, have warned that the Trump administration’s currency intervention has failed, predicting a further 15%-30% plunge for the peso if Milei’s party suffers another electoral defeat. Brusuelas bluntly asked, “Will the U.S. get paid back?”—a question on many minds, given Argentina’s history of defaulting on foreign debt.
The Trump administration, for its part, has doubled down on its support for Milei. In addition to the $20 billion swap line, Treasury Secretary Scott Bessent—a billionaire and former hedge fund manager—revealed plans to facilitate an additional $20 billion bailout from private lenders, bringing the total rescue package to $40 billion. Bessent described the aid as necessary to prevent a “failed state” and called it “a bridge to a better economic future for Argentina, not a bailout.”
Trump himself defended the rescue package aboard Air Force One, telling reporters, “They have no money, they have no anything, they’re fighting so hard to survive.” At the same time, the administration has reportedly pressured U.S. companies to make “substantial foreign direct investments” in Argentina if Milei’s allies win the October 26 elections. The Treasury Department has also been seen selling hundreds of millions of dollars to prop up the peso and is allegedly considering direct purchases of Argentine bonds to stabilize the economy.
Yet, these moves have stirred controversy both at home and abroad. Critics argue that Trump’s intervention in Argentina runs counter to his “America First” mantra and appears aimed at bailing out wealthy American investors with stakes in Argentina’s volatile markets. Journalist Judd Legum pointed out that one of the biggest benefactors of the bailout is American hedge fund billionaire Robert Citrone, a close friend of both Bessent and Milei.
On the ground in Argentina, Milei’s popularity has plummeted. A poll in early October showed that 65% of Argentines oppose his government, with only 35% supporting his libertarian policies. The same survey found that nearly two-thirds of Argentines believe Milei’s close alliance with Trump will not bring real investment to Argentina, dismissing it as mere political theater. The president’s party, “Liberty Advances,” suffered a crushing defeat in Buenos Aires local elections in September, and the upcoming congressional elections are expected to further erode his political support.
The crisis has also been exacerbated by a string of corruption scandals. Milei has faced accusations of promoting a crypto meme coin scam that cost his supporters billions, repealing anti-nepotism laws to appoint his sister as chief of staff, and allegedly allowing bribes to flow through government agencies. In early October, Milei signed an executive order granting the U.S. military access to Argentine bases without congressional approval, sparking outrage and accusations of “surrendering our sovereignty.”
Despite the chaos, the Western financial press has praised Milei for reducing the government deficit and boosting the stock market—developments that have disproportionately benefited wealthy investors. But for ordinary Argentines, the reality is starkly different: soaring prices, shrinking paychecks, and deepening poverty.
As Argentina braces for the congressional elections, the fate of Milei’s government—and the effectiveness of the U.S.-backed bailout—hangs in the balance. With $18 billion in dollar-denominated debts coming due next year, and widespread skepticism about the prospects for repayment, the stakes could hardly be higher. The coming days may reveal whether outside intervention can truly rescue Argentina’s battered economy, or if the country is headed for yet another painful reckoning.