"finalized a $20 billion currency swap line with Argentina's central bank, Treasury Secretary Scott Bessent said in a social media post, a rare move aimed at stabilizing turbulent financial markets in the cash-strapped Latin American ally. "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 held four days of meetings with Argentine Economy Minister Luis Caputo in Washington D.C. to cement the deal."
"Bessent, under fire from U.S. farmers and Democratic lawmakers, has insisted that the credit swap is not a bailout. Farmers are angry about the idea of rescuing Argentina, whose own farmers have benefited from a recent gush of sales of soybeans to China at the expense of their U.S. counterparts. Lawmakers have pushed Trump to explain how this financial help aligns with his "America First" agenda."
The United States directly purchased Argentine pesos and finalized a $20 billion currency swap line with Argentina's central bank to stabilize turbulent financial markets in a cash-strapped ally. The Treasury framed the move as immediate and exceptional measures to provide market stability, following multiple days of meetings with Argentine economic officials. Argentina's President Javier Milei expressed gratitude, praised U.S. leadership, and called for regional economic freedom and prosperity. The action sparked domestic U.S. backlash from farmers and Democratic lawmakers, who criticized the assistance as a bail-out and proposed legislation to block use of the Exchange Stabilization Fund for Argentina.
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