Argentina currency swap agreement with the United States worth up to $20 billion, aimed at supporting the country’s economic stability, according to Argentina’s central bank.
The deal represents a major show of support from Donald Trump’s administration, which has been a strong backer of President Javier Milei, who faces mounting pressure ahead of the October 26 midterm elections.
The Argentine peso has been experiencing sharp volatility in recent weeks, unsettling both savers and consumers who fear further depreciation. In addition to the swap line, U.S. Treasury Secretary Scott Bessent recently announced plans to arrange a separate $20 billion facility from private banks and sovereign wealth funds to reinforce Argentina’s struggling economy.
Argentina currency swap agreement with USA
Once hailed as a global symbol of libertarian, budget-cutting economics, Milei is heading into the vote politically weakened after failing to stabilize the peso despite nearly exhausting the Central Bank’s dollar reserves in efforts to support it.
Inflation, which initially slowed after Milei took office in December 2023, has begun climbing again month after month.
During a meeting with Milei at the White House last week, Trump issued a stark warning to Argentine voters, suggesting U.S. financial support could depend on the election outcome.
Argentina currency swap agreement with USA “If he loses, we are not going to be generous with Argentina,” Trump said.
