TLDR:
- The US Ministry of Finance Scott Bessent confirmed a SWAP agreement with $ 20 billion with Argentina’s central bank to stabilize liquidity.
- The United States directly bought Argentine Pesos after meetings with Economics Minister Luis Caputo in Washington, DC
- President Trump and Argentina’s Javier Milei will meet on October 14 to deepen financial and trade coordination.
- The Treasury movement aims to strengthen Argentina’s reforms and anchor stability over the Western Hemisphere.
Argentina has received Rare support from Washington. Following four days of calls in DC, the Secretary of the American Finance Ministry announced Scott Bessent directly to purchase Argentine Pesos and a framework for $ 20 billion currency with the Argentine central bank.
The deal aims to facilitate Argentina’s liquidity disorder and strengthens President Javier Milei’s financial reform. Both sides described the movement as an attempt to stabilize the markets and attract US investments.
The announcement followed a series of political meetings between the Ministry of Finance’s officials and Minister of Finance Luis Caputo.
US Treasury and Argentina Seal 20 billion currency swap
In a post on X, Bessent said that the US Treasury ended four days with “intense meetings” with Minister Caputo and his team.
The conversations focused on Argentina’s structural reforms, increasing exports and growing foreign reserves. He stated that while international institutions such as the IMF support Argentina’s fiscal way, the United States acted “quickly” to stabilize peso and marketing believers.
The SWAP agreement of $ 20 billion gives Argentina access to dollar liquidity at a critical moment. Treasury officials described the movement as part of a broader adaptation between Washington and Buenos Aires during Milei’s market-focused agenda. According to Bessent, the United States remains ready to take “exceptional measures” to protect stability.
Caputo’s office echoed the feeling and called the deal “a breakthrough in trust building between two economies that are placed for renewed cooperation.”
Local analysts said that the action can facilitate the short -term pressure on Peson and help replenish reserves. The currency exchange is expected to supplement ongoing IMF coordination on tax cases.
US confirms support for Milei’s financial reforms
Bessent emphasized that Argentina’s policy “rooted in tax discipline” remains sound and that its exchange rate “is appropriate for purpose.”
He quoted broadly domestic consensus that supported Milei’s reform plan for the rest of his term. According to his remarks, the Trump administration’s “America First” strategy is trying to strengthen allies that strive for open markets and private investment.
Treasury Chief added that American companies Are increasingly interested in expanding the operations in Argentina as regulatory barriers decrease. He noted that Milei’s focus on lower taxes and narrower government spending is in line with US financial priorities in the region.
Bessent concluded that a strong, stable Argentina supports a prosperous Western hemisphere and said that Washington sees its success as “a two -party priority.”
He confirmed plans for a meeting between President Donald Trump And President Milei on October 14, expected to promote joint investment programs and financial cooperation.
