The Donald Trump administration began the long-promised financial rescue for Argentina on Thursday. After four days of negotiations in Washington with the Argentine economic team, U.S. Treasury Secretary Scott Bessent reported that they had intervened in the foreign exchange market with direct purchases of Argentine pesos and that a $20 billion currency swap agreement had been finalized.
The lifeline provided by the United States is key to supporting the government of Argentine President Javier Milei in the run-up to the legislative elections on October 26. Argentina is facing significant financial instability, while Milei has been embroiled in political scandals.
The @USTreasury has concluded 4 days of intensive meetings with Minister @LuisCaputoAR and his team in DC. We discussed Argentina’s strong economic fundamentals, including structural changes already underway that will generate significant dollar-denominated exports and foreign…
— Treasury Secretary Scott Bessent (@SecScottBessent) October 9, 2025
“The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets,” Bessent said in a lengthy post on X.
Bessent argued that Argentina needed immediate help to address its serious liquidity problem. “Only the United States can act swiftly. And act we will,” Bessent continued.
Milei’s first reaction was to praise Argentina’s economy minister, Luis Caputo. “By far the best economy minister in Argentine history…! Long live freedom, damn it!” he said on social media alongside a photo of the two of them.
The announcement capped a disastrous week for the far-right government. On Sunday, its top congressional candidate in Argentina’s largest province, José Luis Espert, resigned over alleged links to drug trafficking. On Monday, Milei headlined a rock concert that drew criticism around the world. Then, on Wednesday, the Buenos Aires provincial electoral court ruled that Espert’s replacement on the party list must be Karen Reinchardt — a former actress and TV host with no political experience — instead of Diego Santilli, one of the most prominent figures from the PRO party.
The political setbacks came amid a financial storm. In just six trading sessions, Argentina’s Treasury sold more than $2 billion to shore up the peso, and was on the verge of running out of liquidity.
The U.S. operation announced by Bessent was carried out through international banks and had an immediate effect. The peso strengthened for the first time in two weeks, closing at 1,450 per dollar after starting the day weaker.
Details of the rescue plan will be released next week, when Economy Minister Caputo returns to the United States — this time accompanied by Milei, who is set to be received by Trump at the White House on Tuesday, October 14.
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