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U.S. Activates $20B Currency Swap with Argentina Amid Political Tensions
U.S. Activates $20B Currency Swap with Argentina Amid Political Tensions
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BTCCSquare news:
The U.S. Treasury has initiated a $20 billion currency swap line with Argentina, funded through the Exchange Stabilization Fund rather than taxpayer money. Treasury Secretary Scott emphasized the arrangement is not a bailout, citing the fund's historical lack of losses. The deal was finalized days before Argentina's pivotal midterm elections, with the U.S. purchasing pesos on open markets despite concerns about overvaluation.
Market observers question the timing as Argentina's libertarian President Javier Milei faces congressional opposition to his austerity reforms. The Treasury has declined to disclose operational details of the peso purchases or swap mechanics, maintaining the intervention supports financial stability.
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