Particle.news
Download on the App Store

White House Backs $20 Billion U.S.–Argentina Swap, Citing Gains as JPMorgan Alumni Shape Plan

Officials in Buenos Aires focus on repairing the central bank’s balance, with reserve building expected only after debt‑management steps.

Overview

  • White House press secretary Karoline Leavitt promoted an analysis portraying the swap as profitable for the United States and not a taxpayer‑funded rescue.
  • Treasury Secretary Scott Bessent said only a small portion of the line was activated and reported a gain after U.S. peso purchases before Argentina’s elections, adding the Exchange Stabilization Fund has not lost money.
  • Central Bank data show Argentine residents bought about US$17.6 billion over six months, underscoring persistent private demand for dollars that complicates reserve rebuilding.
  • The Wall Street Journal detailed how Economy Minister Luis Caputo and a cohort of former J.P. Morgan and Deutsche Bank officials, including José Luis Daza, Santiago Bausili and Pablo Quirno, helped secure U.S. support.
  • Morgan Stanley reported it expects reserve accumulation to start after a liability‑management operation, noting Argentina may need roughly US$15 billion in additional reserves by end‑2026 and a 10%–15% peso depreciation to close the current‑account gap.