Core Insights - The Argentine peso has experienced a significant decline, trading at an unprecedented rate of 1,500 against the USD, marking a 45% increase in the USD/ARS exchange rate this year, making it the worst-performing currency [1][4]. Economic Context - The surge in the USD/ARS pair occurred despite US government interventions, including the sale of dollars through Banco Santander and a $20 billion currency swap line [2][3]. - The US Treasury is also negotiating with American banks for additional loans, although many banks are hesitant to participate [3]. Political Factors - The upcoming mid-term elections in Argentina pose a risk to the current administration, with the potential loss of Milei's party, which could lead to a cessation of US aid [3][5]. - There is significant domestic pressure on Donald Trump regarding the bailout, with some lawmakers advocating for prioritizing American interests over foreign aid [5][6]. Market Analysis - Technical analysis indicates that the USD/ARS pair has been in a strong uptrend, surpassing key resistance levels, suggesting potential for further gains [8][9]. - The ongoing rally of the US dollar, with the dollar index rising from 96 to nearly 100, has contributed to the peso's decline against both developed and emerging market currencies [7].

You know what time it is. Money, power, politics, and the US bailout of Argentina is hitting another major obstacle. The Wall Street Journal reports multiple banks, just slow down on this, including JP Morgan, Bank America, and Goldman Sachs, the big ones.They're out there hunting for collateral to back a 20 billion loan to the country because they want to make sure they get their money back. It would be part of the Trump administration's $40 billion lifeline. But US banks have not been lending to Argentina ...