Street Calls of the Week
Investing.com -- The United States Treasury Secretary Scott Bessent has expressed support for Argentine President Javier Milei through a financial aid package that includes a $20 billion currency swap.
Bessent emphasized that stabilizing Argentina is a priority for the U.S., while clarifying that the financial assistance is not a bailout but rather a strategic investment, noting that the Argentine peso is currently undervalued.
The U.S. is actively purchasing Argentine pesos to support the exchange rate, with Bessent stating that the current exchange rate band is appropriate.
In response to Bessent’s remarks that the U.S. doesn’t want "another failed or China-led state in Latin America," a spokesperson for the Chinese Embassy in Argentina stated that the U.S. should take practical steps for the development of Latin American and Caribbean countries instead of causing difficulties for friendly cooperation with other nations.
The embassy spokesperson added that Latin America and the Caribbean is not anyone’s "backyard," and that cooperation with China should not be interfered with by any third party.
Yesterday, President Donald Trump threatened a “massive increase” in tariffs on Chinese imports, citing Beijing’s new export controls on rare earth minerals.
He also warned he may cancel his planned meeting with President Xi Jinping over the escalation.