Argentina on Monday finalised a $20 billion currency swap agreement with the United States to help stabilise its struggling economy, the country’s central bank announced.
The deal comes as part of a broader financial support package from the administration of US President Donald Trump, who has been a strong ally of Argentine President Javier Milei. The agreement was confirmed just days before Argentina’s mid-term elections set for October 26.
The Argentine peso has been unstable in recent weeks, sparking fears among citizens that it may lose further value.
In addition to the swap deal, US Treasury Secretary Scott Bessent last week said Washington was also working to arrange another $20 billion credit facility through private banks and sovereign wealth funds to aid Argentina’s economy.
Milei, who gained fame for his radical budget-cutting stance, has struggled to stabilise the peso despite heavy spending of the Central Bank’s dollar reserves. Inflation, which had briefly eased after he assumed office in December 2023, is once again climbing each month.
During Milei’s recent visit to the White House, Trump warned Argentine voters that financial aid could be withdrawn if Milei loses the coming election.
“If he loses, we are not going to be generous with Argentina,” Trump said.
The currency swap is aimed at shoring up Argentina’s foreign reserves and calming market fears as the country heads into a tense election period.
