The United States has taken a firm stance in supporting Argentina’s negotiations with the International Monetary Fund (IMF), making it contingent on President Javier Milei’s willingness to cut ties with China, particularly by ending a key currency swap agreement.
This conditional support underscores a strategic effort by the US to diminish China’s influence in Latin America.
Argentina is currently seeking a $20 billion loan from the IMF, after historically defaulting multiple times on its debts.
With inflation rates soaring at 84.5%, the situation remains critical, despite recent improvements under President Milei’s administration, which had seen rates climb as high as 211% in late 2023.
Mauricio Claver Carone, a prominent figure in US-Latin American relations, recently articulated the necessity for Argentina to prioritize its cooperation with the US and the IMF over its existing financial ties with China.
The currency swap agreement, established in 2009, has been crucial for Argentina’s economy, yet the US perceives it as a means for China to maintain significant leverage over Argentina’s economic policies.