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Treasury Defends $20 Billion Argentina Swap as Talks Continue on Larger Rescue

Washington is using the lifeline to press Buenos Aires on reducing economic ties to China, drawing intensified scrutiny from Congress.

President Javier Milei joins the crowd during a rally in support of his party's candidates ahead of the upcoming midterm elections, in Rosario, Argentina, Thursday, Oct. 23, 2025. (AP Photo/Rodrigo Abd)
Argentine President Javier Milei waves to supporters upon arriving at a hotel in Rosario, Argentina, Thursday, Oct. 23, 2025. (AP Photo/Rodrigo Abd)
President Javier Milei addresses supporters at a rally for his party's candidates ahead of the upcoming midterm elections, in Rosario, Argentina, Thursday, Oct. 23, 2025. (AP Photo/Rodrigo Abd)
Argentine President Javier Milei waves to supporters upon arriving at a hotel in Rosario, Argentina, Thursday, Oct. 23, 2025. (AP Photo/Rodrigo Abd)

Overview

  • Treasury Secretary Scott Bessent labeled the ESF-backed agreement with Argentina “mission-critical,” saying it proceeds during the U.S. government shutdown.
  • The $20 billion framework functions as a currency swap with Argentina’s central bank, and U.S. officials are negotiating a separate roughly $20 billion private bank facility.
  • President Trump has linked further U.S. support to President Javier Milei’s political standing and reform agenda ahead of Argentina’s midterm elections.
  • U.S. officials have urged Argentina to limit Chinese access to critical minerals and discuss U.S. access to uranium while steering telecom and infrastructure deals toward American providers, according to reporting.
  • Sen. Elizabeth Warren has challenged the move and introduced the No Argentina Bailout Act as the peso, after a brief bounce, has weakened to new lows.