Treasury Sec Bessent Defends $20B Argentina Aid Amid US Government Shutdown

During the 2025 U.S. government shutdown, Treasury Secretary Scott Bessent defended a $20 billion currency swap deal to support Argentina's financial system, emphasizing it as a mission-critical measure aligned with President Donald Trump's constitutional duties, including national security and global financial stability. The deal allows Argentina's central bank to exchange pesos for U.S. dollars to inject liquidity and stabilize the peso, which has recently weakened following local election setbacks for Argentine President Javier Milei, an ally of President Trump. Senator Elizabeth Warren questioned the timing and prioritization of this financial support amid constrained federal resources, but Bessent maintained that the Treasury prioritized essential efforts and did not directly address inquiries about private-sector involvement. Despite an initial rise in the peso’s value after the announcement, the currency has since fallen to new lows, signaling ongoing economic challenges in Argentina. President Trump has linked future U.S. economic assistance to the outcome of Argentina’s upcoming midterm elections, adding political complexity to the financial support efforts. Overall, the Treasury's intervention aims to bolster Argentina’s economic stability amid political and market uncertainties.