On October 14, 2025, Argentina’s President Javier Milei arrived in Washington, D.C., for a high-stakes meeting with U.S. President Donald Trump at the White House. The timing couldn’t have been more critical: with Argentina’s midterm elections looming on October 26, Milei faces mounting economic turmoil at home and rising disapproval ratings. The visit, widely covered by international media, marks a pivotal moment for both leaders—and for the future of Argentina’s embattled economy.
Milei, a self-described libertarian firebrand, has been effusive in his praise for Trump. On Monday, he took to social media to congratulate the U.S. president for securing a ceasefire in Gaza. "Your commitment to life, freedom and peace has restored hope to the world," Milei wrote, adding, "It is an honor to consider you not only an ally in the defense of those values, but also a dear friend and an example of leadership that inspires all those who believe in freedom." According to the Associated Press, such declarations are part of Milei’s strategy to strengthen ties with the U.S. and shore up support for his free-market reforms.
The centerpiece of this budding alliance is a $20 billion bailout lifeline from the Trump administration, announced last Thursday by U.S. Treasury Secretary Scott Bessent. The deal—described by Reuters as a rare direct U.S. intervention in Latin American currency markets—includes a currency swap line designed to prop up Argentina’s peso and replenish its depleted foreign currency reserves. The U.S. Treasury also directly purchased an unspecified amount of Argentine pesos, a move that sent a strong signal to jittery markets.
Argentina’s economy has been teetering on the brink. In recent weeks, the government has spent more than a billion dollars defending the peso, but with little effect. Rising unemployment, contracting economic activity, and a string of corruption scandals have eroded confidence in Milei’s administration. After a landslide loss in a local election last month and ongoing setbacks in Congress, investors dumped Argentine bonds and sold off the peso, further destabilizing the country’s finances.
According to Bloomberg, the peso’s official exchange rate strengthened by 5.5% on October 13, falling from AR$1,459 to AR$1,379. The MEP rate dropped 2.1% to AR$1,410, and Argentine dollar bonds rebounded by up to 4% in the local market. The S&P Merval index rose 1.7%, while Argentine stocks traded on Wall Street through American Depositary Receipts jumped as much as 17.2%. Economist María Belén San Martino of Balanz brokerage credited the U.S. Treasury’s direct intervention for anchoring market expectations, but warned that "uncertainty" remains about the full composition of the bailout package.
For Milei, the timing of the U.S. bailout is crucial. He is determined to avoid a devaluation of the peso before the October 26 midterm elections, fearing that such a move would trigger a resurgence in inflation and further damage his popularity. As Marcelo J. García, Director for the Americas at Horizon Engage, told the Associated Press, "Milei is going to the U.S. in a moment of desperation now. He needs to recreate market expectations and show that his program can be sustainable. The government is trying to win some time to make it to the midterms without major course corrections, like devaluing or floating the peso."
The $20 billion currency swap line is not without controversy. Argentina is already the International Monetary Fund’s largest debtor, having received multiple loans in recent years—including $40 billion and $14 billion before the current lifeline. Experts like Brad Setser, a former U.S. Treasury official now at the Council on Foreign Relations, have voiced concerns that the bailout may be only a short-term fix. "The U.S. should be concerned that Argentina has had to return for $20 billion so quickly after getting $14 billion upfront from the IMF," Setser told the AP. "I worry that this may prove to just be a short-term bridge and won’t leave Argentina better equipped to tackle its problems."
The meeting between Milei and Trump is expected to last two hours, followed by a working lunch with top officials. The Argentine president will also participate in a White House ceremony honoring Charlie Kirk, the conservative activist who was fatally shot last month. Milei, who often crossed paths with Kirk on the global right-wing speaking circuit, has made no secret of his admiration for Trump and his alignment with U.S. and Israeli interests. In a radio interview on Monday, Milei said, "They know we are a true ally."
But not everyone is convinced that the U.S. bailout will solve Argentina’s deep-rooted problems. According to the Buenos Aires Times, Argentina’s economic team remains tight-lipped about the details. Economy Minister Luis Caputo has ruled out immediate plans to dollarize the economy or alter the floating exchange rate band, despite widespread speculation of post-election changes. Caputo hinted that further assistance may be forthcoming, saying, "There will likely be an announcement on Tuesday."
Speculation is rife about what, if anything, the Trump administration expects in return for its support. Before Milei took office, Argentina had been deepening ties with China, particularly through an $18 billion currency swap with the People’s Bank of China. While some U.S. officials have suggested that Milei is committed to removing China from Argentina’s financial orbit, Argentine Cabinet Chief Guillermo Francos has denied that ending the China swap is part of the agreement. The Chinese Embassy in Buenos Aires fired back, accusing the U.S. of "acts of hegemony and bullying."
Meanwhile, economists are watching closely to see how the bailout will be structured. Juan Manuel Telechea, a professor and economist, noted that while the U.S. announcement helped stabilize the market, "we have to wait a little longer to find out the fine print of how they are going to implement it." Telechea pointed out that if the U.S. government asks Argentina to pay off its swap with China, "it’s practically an exchange between yen and U.S. dollars, because the swap with China is about $19 billion."
All eyes are now on the outcome of the Trump-Milei summit. As San Martino observed, "The market’s focus is on the meeting between Trump and Milei, where definitions on the scope of the package are expected." Investors, voters, and international observers alike are waiting for clarity—not just on the immediate bailout, but on the broader direction of Argentina’s economic policy and its place in the global order.
For Milei, the stakes couldn’t be higher. As he put it in a burst of optimism before departing for Washington, "There will be an avalanche of dollars. We’ll have dollars pouring out of our ears." Whether this confidence is justified—or simply wishful thinking—remains to be seen as Argentina’s economic drama unfolds on the world stage.
