United States Announces Historic $20 Billion Currency Swap to Support Argentina

In a major financial move, Scott Bessent, Secretary of the United States Department of the Treasury, confirmed that the U.S. Treasury has executed a $20 billion currency swap with the Banco Central de la República Argentina (BCRA) and purchased Argentine pesos, in a bid to ease the country’s severe liquidity crisis.

“The United States is acting swiftly to help stabilize Argentina’s economy,” Bessent stated on X, highlighting the “strong fiscal and economic cooperation” between the two nations.

The news triggered a rally in financial markets: Argentine dollar bonds jumped as much as 9.3%, and Wall Street ADRs soared up to 27.3%, led by the banking sector. The S&P Merval index in U.S. dollars rose 10.9%, reaching its second-highest level in a month.

Strategic backing from Washington

The announcement came as Argentina’s Economy Minister Luis Caputo returned from high-level meetings in Washington, with strong support from the International Monetary Fund (IMF) and other international actors.

“Only the United States can act with speed in this scenario,” Bessent emphasized, confirming that the Treasury also intervened directly in Argentina’s domestic foreign exchange market. Analysts believe this move reinforces the sustainability of Argentina’s exchange rate system and helps ease pressure on official dollar demand.

Bessent, a close economic ally of former President Donald Trump, also stressed that “U.S. business leaders are eager to strengthen economic ties with Argentina under Javier Milei’s leadership,” praising Argentina’s fiscal discipline.

Market euphoria and political expectations

In New York, banking ADRs surged: Grupo Supervielle (+26.9%), Grupo Financiero Galicia (+21.7%) and Banco Macro (+17.5%). Local stocks also climbed sharply.

All eyes are now on the upcoming White House meeting between Milei and Trump, scheduled for Tuesday, October 14, where further support measures could be announced.

With this $20 billion swap and direct peso purchases, Washington aims to stabilize Argentina’s volatile pre-election financial landscape. Analysts expect the country risk index to potentially drop below 1,000 basis points, signaling renewed investor confidence.