America Steps In: Trump Administration Finalizes $20 Billion Currency Swap with Argentina

The United States and Argentina have signed a historic $20 billion currency swap agreement, aimed at preventing the collapse of the Argentine peso and stabilizing the country’s fragile economy, shaken by inflation, protests, and corruption scandals. According to U.S. Treasury Secretary Scott Bessent, this represents one of the “swiftest and most decisive actions” of the Trump administration to stabilize a foreign ally’s economy. The deal was finalized after four days of intense negotiations in Buenos Aires, where the American delegation met with the government of President Javier Milei. “The U.S. Treasury is prepared to take extraordinary measures to ensure market stability,”

Bessent stated on X, adding that the U.S. would directly purchase Argentine pesos through the Exchange Stabilization Fund.

Peso in Free Fall — Washington Intervenes The Argentine peso fell below 1,400 per U.S. dollar this week, nearing its record low of 1,475 from September.

Bessent said Argentina has entered “a moment of acute illiquidity,” as its central bank reserves continue to shrink and capital outflows accelerate. The swap agreement will grant Argentina immediate access to U.S. dollars in exchange for pesos, allowing the central bank to defend the exchange rate and maintain market liquidity.

Officials acknowledge that if the peso weakens further during the swap period, the U.S. could incur losses — a risk Washington appears willing to accept to preserve regional stability.

Trump and Milei Strengthen Alliance President Donald Trump and his Argentine counterpart Javier Milei — often dubbed the “South American libertarian” — first discussed the deal in September during the U.N. General Assembly in New York.

The two leaders are expected to meet again in Washington to discuss further steps in U.S. economic support. “American business leaders are eager to invest in Argentina under President Milei’s leadership,”

Bessent said, emphasizing that the Trump administration “is committed to supporting allies who promote freedom, lower taxes, and open markets.”

150% Inflation, Scandals, and Political Unrest The agreement comes as Argentina’s inflation surpasses 150%, with investor confidence collapsing.

President Milei faces mass protests and corruption scandals, including one involving his sister and chief of staff, Karina Milei. Despite mounting pressure, Milei remains committed to his radical “chainsaw plan” — deep government spending cuts aimed at saving Argentina from economic disaster. Sources close to the International Monetary Fund say the swap will be reviewed quarterly, with its success depending on whether Milei can maintain fiscal discipline and rein in inflation.

What the Deal Means for Markets 💠 Immediate access to U.S. dollars helps Argentina protect its dwindling reserves.

💠 Trump reasserts U.S. geopolitical influence in Latin America, countering China’s growing footprint.

💠 Markets expect short-term peso stabilization, though long-term risks remain if Milei fails to deliver reforms. This currency swap is not just an economic maneuver — it’s a strategic signal of Trump’s second-term foreign policy: the U.S. is reclaiming influence in Latin America while Argentina struggles to escape its worst monetary crisis in a decade.

#argentina , #usa , #TRUMP , #Milei , #USDT

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