Treasury Secretary Scott Bessent said Argentina has fully repaid a U.S. currency swap used during a 2025 liquidity crisis, calling the deal profitable for Americans and supportive of regional stability.
By yourNEWS Media Newsroom
Treasury Secretary Scott Bessent said Jan. 9 that Argentina has repaid funds drawn from a $20 billion currency swap line with the United States, concluding a short-term liquidity arrangement extended during a severe cash crunch last year.
Argentina sought the backstop in October 2025 amid acute market stress that threatened the peso and broader financial stability. The Trump administration provided support through a temporary currency-swap facility designed to ease short-term illiquidity rather than assume Argentina’s long-term liabilities. U.S. officials have not disclosed how much of the $20 billion authorization Buenos Aires ultimately used.
Three months later, Bessent said the United States no longer held Argentine pesos and generated a profit from the transaction, describing the outcome as an “America First” success. In a public statement on X, Bessent said stabilizing Argentina while earning “tens of millions in profit for Americans” demonstrated the effectiveness of the administration’s approach.
The arrangement drew criticism from some Democratic lawmakers, who characterized the swap line as a de facto bailout. Sen. Elizabeth Warren introduced legislation seeking to bar the Treasury from using its Exchange Stabilization Fund for Argentina, arguing that taxpayers deserved transparency over the use of more than $20 billion in federal financial support. Warren also pressed the New York Federal Reserve and JPMorgan Chase for details on reported purchases of Argentine pesos connected to the swap, raising concerns alongside Sen. Jeanne Shaheen about public exposure during a period of high living costs.
Administration officials rejected the bailout characterization, emphasizing that the swap line involved temporary liquidity that required full repayment of dollars at the end of the term. The stated goal, Bessent said, was to address “acute, short-term, and urgent illiquidity pressure,” not to recapitalize Argentina or prevent insolvency.
“With Argentina stabilized, the markets are now meeting the Argentine Republic’s financing needs,” Bessent said, crediting the economic program of President Javier Milei and Finance Minister Luis Caputo. He reiterated those points in a November interview on Morning Joe, noting that unlike most bailouts, the U.S. government made money on the deal.
Market conditions in Argentina improved after political turbulence earlier in 2025 rattled investors. Following disappointing provincial election results in September, Argentine stocks, bonds, and the peso slid on fears Milei’s reform agenda would stall. Those concerns eased after the Oct. 26 midterm legislative elections, in which Milei’s coalition secured a strong showing in both chambers of Congress.
Since then, Argentina’s benchmark S&P MERVAL index has surged, inflation has fallen sharply from triple-digit levels, and the economy has returned to growth. Ratings analysts said the post-election momentum helped calm currency markets and improve prospects for continued reforms.
Despite the rebound, analysts and U.S. government researchers cautioned that risks remain. A late-December Congressional Research Service assessment pointed to persistent foreign-exchange constraints, warning that without sustained inflows of hard currency, Argentina could again face difficult choices over debt repayment or exchange-rate policy. In that scenario, additional support from the United States or the International Monetary Fund could come back into focus.
For now, U.S. officials say the repayment of the swap line closes a chapter in what they view as a profitable and strategic intervention—one aimed at stabilizing a key regional partner without committing long-term taxpayer funds.
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