US and Argentina Finalize $20 Billion Currency Swap to Stabilize Peso

The United States has secured a $20 billion currency swap agreement with Argentina, marking one of the TRUMP administration's most significant economic interventions since returning to power. Treasury Secretary Scott Bessent announced the deal following intensive negotiations in Buenos Aires, emphasizing immediate action to stabilize markets. The Treasury has directly purchased Argentine pesos to bolster the program.

Argentina, under President Javier Milei, faces severe currency instability, with the peso plummeting to near-record lows against the dollar. The swap line grants Argentina immediate access to USD liquidity in exchange for pesos, aiming to shore up foreign reserves and defend the exchange rate. Bessent acknowledged the risks of further peso depreciation but framed the MOVE as necessary to avert a liquidity crisis.