The United States Treasury has signed a $20 billion currency swap agreement with Argentina’s central bank, providing crucial liquidity as the South American nation pursues economic reforms under President Javier Milei.
The deal allows Argentina to exchange pesos for U.S. dollars, strengthening foreign reserves and supporting price stability in a country long challenged by high inflation and debt crises. Treasury Secretary Scott Bessent said the swap reflects Washington’s commitment to allies pursuing bold economic reforms.
The U.S. Federal Reserve will facilitate the swap for up to three years, with potential renewals. Argentina’s central bank previously had a similar $18 billion facility with China, which the new U.S. deal could supplement or partially replace.
Initial transfers from the swap are expected within days. Discussions are also underway for U.S. banks to provide an additional $20 billion in lending, potentially doubling support to $40 billion. Analysts note the agreement signals confidence in Milei’s policies but caution that structural reforms are critical for lasting stability.
The move comes as Argentina’s economy contracted 3.9% in the first half of 2025 despite falling inflation. The swap could improve access to IMF funding and ease market pressures while reflecting a U.S. shift toward bilateral financial support in Latin America.
