US Unlocks US$20B to Rescue Argentina’s Economy

The United States on Thursday ‘rescued’ Argentina’s currency market, buying Argentine pesos and finalizing a US$20 billion currency swap intended to steady the South American nation’s finances as it heads into crucial legislative elections. 

U.S. Treasury Secretary Scott Bessent said the Treasury had acted after four days of meetings with Argentina’s economic team and that Washington stood ready “immediately, to take whatever exceptional measures are warranted to provide stability to markets.” 

The move followed intense negotiations in Washington between Bessent and Argentina’s finance officials, led by Economy Minister Luis Caputo, aimed at addressing a severe liquidity squeeze that had pushed the peso lower and battered Argentine bond prices. Officials described the arrangement as a swap line with the central bank rather than a traditional bailout.

Markets reacted positively to the US’s rescue of Argentina 

Markets reacted positively to the announcement. Argentine bond prices firmed and the peso strengthened modestly on reports of U.S. purchases and the swap framework. Treasury and White House officials said details of the swap’s mechanics would be worked out with Argentina’s central bank and international partners. 

The assistance comes amid political controversy. Critics in the United States, including some Democratic lawmakers and farm groups, argued that the support risks favoring an administration whose trade ties and agricultural exports to markets such as China have complicated U.S. interests. Supporters say rapid action was needed to prevent a broader financial collapse in Argentina. 

The @USTreasury has concluded 4 days of intensive meetings with Minister @LuisCaputoAR and his team in DC. We discussed Argentina’s strong economic fundamentals, including structural changes already underway that will generate significant dollar-denominated exports and foreign…

— Treasury Secretary Scott Bessent (@SecScottBessent) October 9, 2025

Argentine President Javier Milei greeted the announcement on social media, praising Caputo as “the best economy minister in Argentina’s history” and thanking U.S. officials. Milei is due to meet with U.S. President Donald Trump at the White House on Oct. 14, a visit seen as politically significant ahead of Argentina’s Oct. 26 legislative vote. 

Argentina is one of the International Monetary Fund’s largest borrowers, and its recent run on the peso and volatile debt markets had raised fears of a broader financial meltdown. U.S. officials said the swap and peso purchases were intended to buy time for policy adjustments and coordination with the International Monetary Fund and other creditors.