US Stands Behind Argentina as Peso Remains Volatile After Midterm Elections
BUENOS AIRES,Argentina – The United States is backing Argentina’s economic recovery following recent legislative elections,but the peso continues too face notable pressure despite a surge in the country’s stock market and bond values. The situation highlights the delicate balance between investor confidence and the enduring economic challenges facing President Javier Milei’s management.
Argentina’s midterm elections, held October 26, 2025, saw a boost for Milei’s reform agenda, triggering a more than 20% surge in the stock market the day after the vote. However, the peso had already plummeted leading up to the elections as Argentinians rushed to exchange the currency for US dollars, recalling the 2019 currency collapse following the election loss of former president Mauricio Macri.
“Every single guy that I talked to, they wanted to buy dollars… they have very fresh memories about that,” said Joaquín Bagües, managing director of Buenos Aires-based Grit Capital group, describing the pre-election run as a “confidence crisis.” While demand for dollars has eased as the election, the peso hasn’t experienced the same sustained recovery as other assets.
Despite a push by Economy Minister Luis “Bessent” to secure an additional $20 billion in private financing, analysts anticipate continued caution from US banks. Argentine companies are beginning to re-enter international lending markets after being largely excluded prior to the election.
Kathryn Exum,co-head of sovereign research at Gramercy Funds Management,suggests the peso could strengthen ”over the medium term” if the government successfully continues economic reforms,but cautions,”there’s a lot that needs to be done between now and than.”
Anthony Simond, investment director on the emerging market debt team at Aberdeen Group, anticipates further peso depreciation. “Bessent may say one thing,but I think the economic reality may force them to be a little bit more flexible in terms of currency management,” he stated.
