The United States has stepped in to help rescue Argentina’s struggling economy, announcing a $20 billion support package and the purchase of Argentine pesos aimed at calming the country’s
volatile markets. The move comes as Argentina faces growing economic turmoil and political pressure ahead of key midterm elections.
U.S. Treasury Secretary Scott Bessent confirmed the deal on Thursday, saying Washington had finalized a $20 billion currency swap agreement with Argentina’s central bank. The initiative, he said, is designed to provide immediate liquidity and stabilize financial conditions.
“Argentina faces a moment of acute illiquidity,” Bessent said in a post on X (formerly Twitter). “To that end, we directly purchased Argentine pesos and finalized a $20 billion framework to strengthen their financial system.”
He added that the U.S. Treasury “is prepared to take whatever exceptional measures are warranted to provide stability to markets.”
The announcement follows four days of talks in Washington with Argentina’s Economy Minister Luis Caputo, and comes just weeks before Argentina’s October 26 midterm elections.
Milei Praises Trump’s “Vision and Leadership”
Argentine President Javier Milei, a vocal ally of former U.S. President Donald Trump, quickly praised the move, calling it proof of Trump’s “vision and powerful leadership.”
Milei’s government has been battling market unrest after a disappointing performance in Buenos Aires provincial elections, which are seen as a key indicator of voter sentiment heading into the national polls.
Trump and Milei are expected to meet in person next week in Washington during the annual meetings of the International Monetary Fund (IMF) and World Bank.
IMF chief Kristalina Georgieva welcomed the U.S. action, saying her organization was “fully aligned in support of Argentina’s strong economic program.” The IMF previously approved a $20 billion loan for Argentina earlier this year.
Criticism and Political Backlash
Not everyone in Washington supports the move. Several Democratic lawmakers have urged the Trump administration to reconsider, citing concerns that Argentina’s recent decision to suspend soybean export taxes could hurt American farmers competing in global markets.
Bessent has pushed back on that criticism, telling CNBC earlier this month that “we are giving them a swap line — we’re not putting U.S. taxpayer money into Argentina.”
He also argued that Argentina’s success is “of systemic importance,” calling a stable and prosperous Argentina “a strategic priority for the United States.”
A Test for Argentina’s Free-Market Reforms
Milei, who took office pledging to overhaul Argentina’s economy through sweeping free-market reforms, has faced both praise and protests at home. His austerity measures have triggered mass demonstrations in Buenos Aires, even as investors cautiously welcome his push to stabilize inflation and attract foreign investment.
In his message to Trump and Bessent, Milei wrote on X: “As the closest of allies, we will make a hemisphere of economic freedom and prosperity.”
Whether this ambitious partnership can steady Argentina’s fragile economy remains to be seen — but for now, the U.S. has made a clear bet on Milei’s vision for a free-market revival in Latin America. Photo by Embajada de Estados Unidos en Argentina, Wikimedia commons.