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Argentina Confirms $20 Billion U.S. Currency Swap Credited to Central Bank

The facility functions as a contingent liquidity line recorded outside reported reserves until tranches are activated.

Overview

  • The Central Bank said the swap funds are under its custody but will not be counted in international reserves until a portion of the line is drawn.
  • Officials described the operation as a stabilization agreement intended to support macroeconomic and price stability.
  • Accounting treatment will list the line in a note to the Central Bank’s 2025 financial statements, with reserve figures reflecting only activated disbursements.
  • Activation of tranches will be determined by future needs, whereas the separate China swap impacted reserves immediately upon implementation.
  • Reporting indicates a possible complementary package from U.S. banks of roughly the same size for Treasury debt backstops, though terms remain unspecified.