Argentina Signs $20B Currency Swap With U.S. Ahead Midterm Elections

Argentina's central bank has signed a $20 billion currency swap agreement with the U.S. Treasury Department aimed at stabilizing the Argentine peso and enhancing the country's monetary policy tools ahead of the critical midterm elections. The deal, backed by IMF Special Drawing Rights converted into dollars, intends to improve Argentina's ability to manage foreign exchange volatility amid the peso's recent record low. U.S. Treasury Secretary Scott Bessent emphasized that ongoing U.S. support depends on Argentina maintaining fiscal austerity and economic reform programs under President Javier Milei's government. Despite the agreement, which is part of a broader strategy to strengthen Argentina's economic stability, currency market volatility persists due to skepticism about the peso's valuation and election uncertainties. President Donald Trump, representing the U.S. administration, has publicly supported the aid package but warned that U.S. assistance could be withdrawn if Milei's party does not succeed in the elections. The swap deal reflects a significant U.S. financial commitment to Argentina's struggling economy, underscoring the geopolitical and economic stakes tied to the upcoming parliamentary vote.