Overview

• Treasury Secretary Scott Bessent outlined a potential $20 billion swap or loan framework on Sept. 22 to steady Argentina’s finances during renewed market stress.
• Senior officials received technical briefings from economist Steve H. Hanke in August and a 20-page Ecuador-based dollarization template in early October without committing to dollarization.
• Market pressure intensified after Javier Milei’s party suffered a heavy loss in Buenos Aires province on Sept. 8, with the peso weakening and volatility picking up.
• Opponents in Argentina and U.S. analysts warn the plan could be economically risky and perceived as partisan support, with some critics alleging benefits for investors holding Argentine assets.
• Strategic motives factor into Washington’s calculus, including Argentina’s lithium and copper reserves and U.S.–China competition, with further discussions planned during Milei’s upcoming White House visit.