Argentina repays US swap facility draw, Treasury reports profit

Argentina has fully repaid its draw on a currency swap facility with the United States, Treasury Secretary nominee Scott Bessent announced in a social media post. The Exchange Stabilization Fund no longer holds Argentine pesos following the repayment.

Bessent stated that the U.S. made "tens of millions" in profit from the arrangement, which was established to address what he described as Argentina's "acute, short-term, and urgent illiquidity pressure" on exchange rate and financial stability in October.

The Treasury official said Argentina has regained access to financial markets and implemented changes to its monetary and exchange rate policy framework under President Javier Milei's administration. The country continues to receive support from the International Monetary Fund through an existing program.

According to Bessent, the Exchange Stabilization Fund was deployed in line with its congressional mandate to provide currency stability support. He noted that the ESF "has never lost money" in its operations.

The announcement comes as Argentina works to stabilize its economy following years of financial challenges. Bessent credited the swift U.S. intervention with helping preserve market and exchange rate stability during a critical period.

The Treasury official indicated that private markets are now meeting Argentina's financing needs, suggesting improved investor confidence in the country's economic policies under the current administration.

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