MercoPress. South Atlantic News Agency

Milei leaves for G7 Summit with a plethora of good news

Se espera que Milei exponga ante el G7 sobre el posible rol de Argentina como polo de desarrollo líder en inteligencia artificial

After a day of good news following the Senate's broad approval of the Bases Law bill in addition to an arrangement with China to extend the currency swap in force, Argentine President Javier Milei and his entourage left for Borgo Egnazia, Italy, to attend the G7 Summit, during which he plans to hold talks with Prime Minister Giorgia Meloni, French President Emmanuel Macron and International Monetary Fund (IMF) Managing Director Kristalina Georgieva, among other world leaders.

The Presidential ARG-01 aircraft is due in Bari, Italy, in time for the international gathering at the exclusive resort not far off where heads of State and Government of the most powerful countries in the world will convene. Joining Milei's team was Presidential Secretary and sister Karina Milei, who has been reported to be accumulating more power at Casa Rosada over the past few weeks.

Argentina is not a G7 member, so Milei is attending the event as a guest. According to Casa Rosada sources, he will be speaking about artificial intelligence and his country's possible role as a center for the development of this technology.

The ARG-01 Boeing 757 took off from Jorge Newbery Airport at 3:00 am Thursday and is estimated to be arriving in Italy after 10 pm local time, thus missing all of the day's events. Milei delayed his departure waiting for the outcome at the Senate.

Renovado swap

— Diana Mondino (@DianaMondino) June 12, 2024

In addition to the approval of the Government's Bases Law bill, the Argentine Government celebrated the renewal of the currency swap with China worth US$ 5 billion. “Swap renewed,” Foreign Minister Diana Mondino posted on X after the agreement with the People's Bank of China (PBOC) for twelve months to be paid off next year.

The Central Bank (BCRA) thus saw some relief after knowing maturities due in June and July were to be skipped. The BCRA also explained that it plans to gradually reduce the swap over the next 12 months and cancel it completely by mid-2026 and celebrated that this understanding was achieved “at critical times for the domestic economy.”

“The extension until July 2026 of the activated tranche of the currency swap will allow the BCRA to continue reducing the risks it faces during the current economic transition, initiated in December 2023, towards a consistent and sustainable monetary and exchange rate regime,” a statement further explained.