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On Eve of Argentina’s Midterms, Milei Confronts Peso Slide as U.S. Support Hangs on Result

The result will determine how much room Javier Milei has to push his program in a Congress where he lacks a blocking share of seats.

Overview

  • U.S. Treasury officials have been buying pesos and set up a $20 billion swap to bolster liquidity, while President Donald Trump said further help depends on Milei winning Sunday’s congressional vote.
  • The peso’s brief bounce faded after Trump warned the U.S. would walk away if Milei loses, and the currency has fallen roughly a quarter since foreign‑exchange controls were lifted in April.
  • Foreign Minister Gerardo Werthein resigned days before the vote after the much‑touted U.S. support failed to stabilize markets, dealing the government a late setback.
  • Polls point to a tight contest between Milei’s La Libertad Avanza and the Peronist Fuerza Patria, with undecided “Siperista” voters likely to decide outcomes in key districts.
  • A series of scandals, including allegations involving Karina Milei, a crypto‑linked enrichment claim, and the withdrawal of top candidate Luis Espert over ties to a suspected drug dealer, has compounded voter anxiety over job losses despite lower headline inflation.