Scott Bessent’s $20B Argentina Peso Bailout Breaks Tradition, Says Former Treasury Secretary

Scott Bessent has approved a unilateral $20 billion currency swap to stabilize Argentina's peso, bypassing traditional IMF or multilateral support structures. The MOVE echoes his earlier surprise intervention tied to President Javier Milei's political survival—a condition reportedly set by former U.S. President Donald Trump.

Larry Summers, architect of the 1994 Mexican peso rescue, criticized the solo approach as a departure from established crisis management playbooks. "This is speculative central banking at scale," Summers told Bloomberg, noting the U.S. historically shared financial stabilization burdens with international partners. The Clinton administration's Mexican intervention involved 17 nations and the IMF.

The deal marks the first time Washington has directly purchased a besieged emerging market currency peg. During Mexico's 1994 "Tequila Crisis," the U.S. explicitly avoided peso purchases, opting instead for dollar-denominated loans. Market analysts suggest the unconventional move could pressure dollar liquidity as Argentina battles 276% annual inflation.