Argentina to Repay US Currency Swap Line by Late 2025
BUENOS AIRES – Argentina has settled its debt with the United States regarding a currency swap established last year, aimed at stabilizing its economy, as announced by U.S. Treasury Secretary Scott Bessent and the Argentine central bank on Friday.
Bessent stated, “In light of Argentina’s improving financial situation, I’m happy to share that Argentina has promptly and fully repaid the limited amount it withdrew from the swap facility with the U.S. Consequently, the Exchange Stabilization Fund currently has no pesos on its books.”
In a follow-up post, Bessent expressed eagerness to continue supporting President Javier Milei and the nation.
Argentina’s central bank, in a separate statement, mentioned that the swap was settled back in December, which was two months after the original agreement was reached.
Deal Made Just Before Key Elections
The local newspaper La Nación reported that out of a possible $20 billion, $2.5 billion had been utilized so far.
Sources noted that the agreement would stay valid according to its terms. The deal came just days ahead of the midterm elections amid rising concerns about Argentina’s economic challenges. The swap was meant to provide a safety net in dollars, allowing the central bank to defend the peso’s value as the elections approached.
This funding was used in October to settle a debt with the International Monetary Fund and to replenish foreign currency that had been used to maintain the exchange rate in the run-up to the election.
President Milei, who is aligned with U.S. President Donald Trump, has successfully broadened his influence within Argentina’s parliament. The U.S. had indicated that any financial assistance to Argentina would depend on election outcomes.
However, the swap arrangement faced criticism in the U.S., with detractors labeling it a bailout and suggesting it could disadvantage U.S. agricultural exports in the competitive Chinese market.
Bessent clarified in late October that there was no cost to American taxpayers, stating that the U.S. aims to leverage its economic clout to bolster allied governments.
Argentina’s Economy Minister Luis Caputo expressed gratitude to Bessent and Trump for their quick response to what he characterized as a direct attack aiming to destabilize the government at a time when citizens are striving for substantial change.
Milei’s administration condemned the parliamentary opposition, protests, and corruption allegations that surfaced shortly before the elections as politically motivated attacks.
