President Trump reaffirmed his support for the Argentine government as the country faces a currency crisis.
In a statement Tuesday, President Trump doubled down on his full support for his Argentine counterpart Mauricio Macri.
The president said Argentina is a key U.S. ally and praised President Macri’s effort to tackle the economic crisis. He urged the IMF to approve the $50 billion loan to the
Photo: A man walks past a sign announcing the price of U.S. dollar and Brazilian real, in exchange for Argentine pesos, at an exchange house in Buenos Aires, Argentina, Monday, Sept. 3, 2018. Argentina’s President Mauricio Macri has announced new taxes on exports and the elimination of several ministries on Monday in a bid to halt economic turmoil that has sent the peso to record lows. (AP Photo/Natacha Pisarenko)
country.
This comes after the Argentine peso has plunged more than 50-percent over the recent weeks, and experts say the crisis will get worse.
“At this point it’s really in a death spiral lower — even a 30 to 50 billion dollar loan from the IMF is not enough to fix the situation,” stated Peter Rosenstreich, head of market strategy for Swissquote Bank. “They’ve had terrible weather, so their exports in agricultural goods is quite low and now putting additional taxes on top.”
Business-friendly President Macri is facing a tough reelection bid next year, while his economy is now headed for a recession.
Source: One America News Network.
