Power gained, independence lost
Milei’s midterm win gives him the votes to drive reforms but at the cost of deeper US financial dependence.
US bailout doubled to USD 40 billion, turning liquidity support into a full geopolitical backstop.
Short-term rates spiked above 80 % as the BCRA struggled with liquidity after scrapping LEFIs.
Peso stabilised near ARS 1,500 to USD but only after heavy intervention and USD 45 million in daily reserve sales.
Inflation 2.1% month on month, 31.8% year on year; growth holds around 4.5 %, yet informality and firm closures keep pressure on jobs.
Overview
October brought Milei the political power he needed - and the financial dependency he feared. His party’s midterm victory has given him a legislative majority for the first time but the price has been steep. Argentina’s economic stability is now effectively underwritten by Washington. The US bailout, doubled to USD40 billion, has stopped a run on the Peso but it has also bound Milei’s fate to the whims...
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