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44m ago

U.S. Unveils $20 Billion Lifeline for Argentina, Calming Peso Rout

The move buys Milei time without fixing the reserve drain or his weak mandate.

NEW YORK, NEW YORK - SEPTEMBER 23: U.S. President Donald Trump (R) holds a printout of his social media post as he speaks with President of Argentina Javier Milei during a bilateral meeting at the 80th session of the UN’s General Assembly (UNGA) at the United Nations headquarters on September 23, 2025 in New York City. World leaders convened for the 80th Session of UNGA, with this year’s theme for the annual global meeting being “Better together: 80 years and more for peace, development and human rights.” (Photo by Chip Somodevilla/Getty Images)
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Overview

  • Treasury Secretary Scott Bessent announced a $20 billion currency swap and credit facility and said Washington stands ready to do what is needed to support Argentina.
  • The pledge sparked a rally in the peso and Argentine assets, delivering a short reprieve for markets and the presidency.
  • Officials signaled the package would operate alongside IMF support using the Exchange Stabilization Fund, with options that include swap access and potential bond or peso purchases if stress intensifies.
  • Argentina’s central bank had been defending a tight peso band by selling dollars, and earlier IMF disbursements were tapped to bolster the currency, accelerating reserve depletion.
  • Milei enters the midterm run-up with a small legislative bloc, a stinging loss in Buenos Aires province, and political damage from contested corruption and crypto allegations that remain unproven.