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U.S. Confirms Argentina Drew on $20 Billion Swap, Citing a Profit

Treasury Secretary Scott Bessent described a limited draw as support that stabilized an ally, with the U.S. booking a gain.

Overview

  • Bessent said on Tuesday that Argentina activated a first tranche of the bilateral currency-swap line and that the United States earned money on the operation.
  • He characterized the action as using the U.S. balance sheet to steady Argentina’s currency during an election period rather than a rescue.
  • The swap framework totals $20 billion, with Bessent saying only a small portion has been tapped so far.
  • Market estimates suggest roughly $2.7 billion has been deployed, reportedly to offset pre-election foreign-exchange interventions and to cover an IMF maturity.
  • Argentine economic officials have declined to detail the draw, citing confidentiality provisions that leave timing and uses under scrutiny.