The United States on Thursday unveiled a sweeping $20 billion economic support program for Argentina, including a direct purchase of Argentine pesos, in a dramatic move to shore up the South American country’s struggling finances.
US Treasury Secretary Scott Bessent said the plan finalised after four days of talks with Argentina’s Economy Minister Luis Caputo in Washington was aimed at stabilising markets amid what he described as “a moment of acute illiquidity.”
“To that end, today we directly purchased Argentine pesos,” Bessent said in a post on social media platform X. “Additionally, we have finalized a $20 billion currency swap framework with Argentina’s central bank.”
He added that the Treasury was “prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets.”
The announcement comes as Argentina reels from market turmoil and currency depreciation following President Javier Milei’s poor showing in the Buenos Aires provincial elections an outcome widely viewed as a warning signal ahead of the October 26 midterms.
Milei, a close ally of former US President Donald Trump, swiftly thanked Washington for what he called its “vision and powerful leadership,” declaring that both nations would work toward “a hemisphere of economic freedom and prosperity.”
The IMF Managing Director, Kristalina Georgieva, hailed the move, writing on X that the fund was “fully aligned in support” of Argentina’s “strong economic program.” The IMF had already approved a separate $20 billion loan package for Buenos Aires in April.
Despite the praise, the Trump administration’s move drew backlash from Democratic lawmakers, who warned that Argentina’s recent decision to suspend soybean export taxes could harm US farmers.
Bessent defended the support package, clarifying that the US was offering “a swap line, not direct cash,” and stressed that Argentina’s recovery was “of systemic importance” to the region.
“A strong, stable Argentina that anchors a prosperous Western Hemisphere is in the strategic interest of the United States,” he said, urging bipartisan backing for the initiative.
Trump and Milei are expected to meet next week, just ahead of Argentina’s high-stakes midterm elections.
Erizia Rubyjeana
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