America Steps In: $20B Swap Deal Ties U.S. Treasury to Argentina’s Peso Push

TLDR:

• U.S. Treasury Secretary Scott Bessent confirmed a $20B swap deal with Argentina’s central bank to stabilize liquidity.
• The U.S. directly purchased Argentine pesos after meetings with Economy Minister Luis Caputo in Washington, D.C.
• President Trump and Argentina’s Javier Milei will meet October 14 to deepen economic and trade coordination.
• The Treasury move aims to strengthen Argentina’s reforms and anchor stability across the Western Hemisphere.
  

Argentina has received rare backing from Washington. After four days of talks in D.C., U.S. Treasury Secretary Scott Bessent announced direct U.S. purchases of Argentine pesos and a $20 billion currency swap framework with the Argentine central bank. 

The deal aims to ease Argentina’s liquidity strain and reinforce President Javier Milei’s fiscal reforms. Both sides described the move as an effort to stabilize markets and attract American investment. 

The announcement followed a series of policy meetings between Treasury officials and Economy Minister Luis Caputo.

U.S. Treasury and Argentina Seal $20 Billion Currency Swap

In a post on X, Bessent said the U.S. Treasury concluded four days of “intensive meetings” with Minister Caputo and his team. 

The talks focused on Argentina’s structural reforms, rising exports, and growing foreign reserves. He stated that while international institutions such as the IMF support Argentina’s fiscal path, the United States acted “swiftly” to stabilize the peso and market confidence.

The $20 billion swap agreement gives Argentina access to dollar liquidity at a critical moment. Treasury officials described the move as part of a broader alignment between Washington and Buenos Aires under Milei’s market-focused agenda. According to Bessent, the United States remains ready to take “exceptional measures” to safeguard stability.

Caputo’s office echoed that sentiment, calling the deal “a breakthrough in confidence-building between two economies positioned for renewed cooperation.” 

Local analysts said the measure could ease short-term pressures on the peso and help replenish reserves. The currency swap is expected to complement ongoing IMF coordination on fiscal targets.

U.S. Reaffirms Support for Milei’s Economic Reforms

Bessent emphasized that Argentina’s policies “anchored on fiscal discipline” remain sound and that its exchange rate band “is fit for purpose.” 

He cited broad domestic consensus backing Milei’s reform plan for the remainder of his term. According to his remarks, the Trump administration’s “America First” approach seeks to strengthen allies pursuing open markets and private investment.

The Treasury chief added that U.S. companies are increasingly interested in expanding operations in Argentina as regulatory barriers decline. He noted that Milei’s focus on lower taxes and leaner government spending aligns with U.S. economic priorities in the region.

Bessent concluded that a strong, stable Argentina supports a prosperous Western Hemisphere and said Washington views its success as “a bipartisan priority.” 

He confirmed plans for a meeting between President Donald Trump and President Milei on October 14, expected to advance joint investment programs and financial cooperation.

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