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3h ago

U.S. Sets $20 Billion Peso Swap to Steady Argentina Before Midterms

Officials gave no timetable for further action, signaling a temporary backstop shaped by political and market risks.

U.S. President Donald Trump (R) shakes hands with President of Argentina Javier Milei during a bilateral meeting at the 80th session of the UN’s General Assembly at the United Nations headquarters on September 23, 2025 in New York City.
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Argentine President Javier Milei reacts during the presentation of his book "Construction of the Miracle", at the Movistar Arena, in Buenos Aires, Argentina, October 6, 2025. REUTERS/Agustin Marcarian
Argentina's President Javier Milei waves to supporters during the launch of his new book, "The Making of the Miracle," at the Movistar Arena in Buenos Aires on October 6, 2025

Overview

  • The Treasury finalized a $20 billion swap framework with Argentina’s central bank and bought pesos on the open market, the first such U.S. move since assisting Mexico in 1995.
  • The peso appreciated sharply after the announcement, while international bonds and U.S.-listed Argentine stocks later surrendered part of their gains.
  • Criticism in Washington targeted the use of Treasury emergency funds without congressional approval, with CFPB Director Rohit Chopra denouncing the bailout.
  • Investors say the Oct. 26 legislative elections will shape President Javier Milei’s reform capacity and could affect whether U.S. support continues, as analysts warn the backstop may not prevent devaluation or default.
  • Treasury Secretary Scott Bessent provided no timeline for additional interventions, and more details are expected after Milei meets President Donald Trump at the White House on Tuesday.