US purchases Argentine pesos, completes $20 billion currency swap

09 Oct 2025 23:52
09 Oct 2025 23:58

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US purchases Argentine pesos, completes $20 billion currency swap

Creator: AGUSTIN MARCARIAN | Credit: REUTERS

On Thursday, the U.S. directly purchased Argentine pesos and finalized a $20 billion currency swap agreement with Argentina's central bank, according to a social media post by Treasury Secretary Scott Bessent.

The intent is to provide assistance from the Latin American country’s economic turmoil, News.Az reports citing The Independent.

“U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets,” Bessent said, adding that the Treasury Department conducted four days of meetings with Argentinian Finance Minister Luis Caputo in Washington D.C. to come up with the deal.

Bessent has insisted that the Argentina credit swap is not a bailout. Last month, President Donald Trump stopped short of promising Argentina’s President Javier Milei a financial bailout from the Latin American country’s economic turmoil.

Still, U.S. farmers and Democratic lawmakers have criticized the deal as a bailout of a country that has benefited from sales of soybeans to China, to the detriment of U.S. farmers.

Argentina is one of the biggest Latin American economies and the biggest borrower from the International Monetary Fund — its total outstanding credit as of Aug. 31 is $41.8 billion.

The offer to financially help Argentina comes as Trump has frequently promoted his “America First” agenda. Critics contend that the planned intervention is a way to reward a personal friend of Trump’s who is facing a critical midterm election next month.

Milei celebrated Bessent’s announcement on social media, hailing his economy minister, Luis Caputo, as “far and away, the best Minister of Economy in all of Argentine history…!!!”

Caputo was in Washington last week for talks with Bessent about the swap line.

Argentina’s deregulation minister, Federico Sturzenegger, also congratulated Caputo and the rest of the economic team. “Let’s keep working so that our children want to stay and live in Argentina,” he wrote, adding a pitch to voters to support Milei in the crucial midterm elections later this month.

News.Az