US Treasury Secretary Scott Bessent confirmed on 9th October that Washington purchased Argentine pesos and concluded a $20 billion economic support program to assist in supporting the South American country’s struggling finances.
Right-wing Argentine President Javier Milei, a Donald Trump ally, quickly thanked the US leader for his “vision and great leadership” after the development.
Milei had been facing market unrest following a loss in Buenos Aires provincial elections regarded as a bellwether for the important midterms later this month.
“Argentina is confronted with a moment of sharp illiquidity,” Bessent posted on social media Thursday, noting that Washington was well-placed to move decisively.
“To that end, we purchased Argentine pesos directly today,” the Treasury chief said. “In addition, we have completed a $20 billion currency swap facility with Argentina’s central bank.”
Bessent emphasized that the US Treasury is “ready, at once, to take whatever extraordinary measures are necessary to impart stability to markets.”
He spoke on X following four days of talks with Argentina’s Economy Minister, Luis Caputo, in Washington.
Bessent went further to say that Trump and Milei are set to meet next week, only weeks ahead of the October 26 midterm elections in Argentina.
The US Treasury Secretary mentioned that he will be seeing Caputo once again next week on the sidelines of the International Monetary Fund (IMF) and World Bank annual meetings in Washington.
IMF head Kristalina Georgieva welcomed the US action in a tweet on X, stating her organization — which in April agreed to a $20 billion loan for Buenos Aires — was “fully aligned in support” of Argentina’s “strong economic program.”
The Trump administration’s commitment to backing Argentina has been criticized, with Democratic legislators asking Trump last month to suspend his plan.
In a letter, they referred to Argentina’s recent move to temporarily suspend taxes on soybean exports, a step they argued undermined US farmers — already beset by several challenges — in the international market.
Bessent has already defended the plans.
He explained to CNBC in early October that “This is just to be clear, we are offering them a swap line. We are not investing in Argentina.”
Bessent went on to say Thursday that “the success of Argentina’s reform agenda is of systemic importance” as well.
He stated, “a stable, prosperous Argentina that contributes to anchoring a vibrant Western Hemisphere is within the United States’ strategic interest,” contending that its success should be a priority that enjoys bipartisan support.
