US finalizes $20 billion currency swap framework with Argentina

The U.S. Treasury Department has concluded a $20 billion currency swap framework with Argentina's central bank following four days of meetings in Washington, Treasury Secretary Scott Bessent announced.

The Treasury also directly purchased Argentine pesos on Thursday as part of intervention in Argentina's foreign exchange markets. Bessent stated the measures address what he described as Argentina's "acute illiquidity" situation.

The announcement followed discussions between Bessent and Argentine Economy Minister Luis Caputo regarding Argentina's economic fundamentals and structural changes. Bessent said the international community, including the International Monetary Fund, supports Argentina's fiscal strategy.

"The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets," Bessent said in the announcement.

The Treasury Secretary indicated the Trump administration's support aligns with strengthening allies that welcome American trade and investment. He noted receiving interest from American business leaders regarding closer economic ties with Argentina under President Javier Milei's leadership.

Caputo informed Bessent of Argentina's coordination with the IMF on commitments under its program. The Treasury Secretary stated Argentina's exchange rate band "remains fit for purpose" when supported by fiscal discipline.

The discussions covered Argentina's investment incentives and U.S. tools for supporting investment in strategic partners. Bessent mentioned a planned meeting between President Trump and President Milei scheduled for October 14.

The information was disclosed through Bessent's social media announcement following the Washington meetings.

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