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U.S. Confirms Argentina Activated Part of $20 Billion Swap, Says It Turned a Profit

The acknowledgment refocuses attention on depleted net reserves ahead of upcoming Central Bank disclosures.

Overview

  • U.S. Treasury Secretary Scott Bessent said Argentina tapped a small portion of the October swap line and that the operation generated a profit for the United States.
  • Officials did not disclose the amount used, while market estimates center on roughly $2.7 billion drawn from the facility.
  • IMF data showed Argentina’s SDR holdings rose by 640.8 million in October as U.S. SDRs fell by the same figure, consistent with a transfer linked to the arrangement.
  • Analysts report that the funds likely reimbursed U.S. pre‑election foreign‑exchange interventions and may have helped cover about $800 million in recent IMF charges and interest; these uses remain unconfirmed.
  • Private estimates place Argentina’s net reserves near negative $12 billion, as policymakers defend the exchange‑rate band framework and signal that remaining currency controls will be removed in the short term.