Argentina secures $20bn currency swap deal with US

Argentina’s central bank announced on Monday that it has signed a $20 billion exchange rate stabilization agreement with the U.S. Treasury Department, just six days before the country’s crucial midterm elections.

In a statement, the bank said the agreement “establishes the terms and conditions for the realization of bilateral currency swap operations between both parties,” adding that it “strengthens the central bank’s capacity to respond to volatility in foreign exchange and capital markets.”

Economy Minister Luis Caputo had previously expressed hopes that the deal would be completed before the midterm vote, in which President Javier Milei’s party aims to expand its minority presence in Congress.

Milei, who has promoted a strict austerity program and major cuts to government spending as solutions to Argentina’s deep economic troubles, has recently faced several political setbacks against a more socially focused opposition.

Last week, U.S. President Donald Trump said Washington would not “waste our time” with Argentina if Milei’s party loses the October 26 vote. The remark briefly rattled local markets before U.S. Treasury Secretary Scott Bessent clarified that the United States would continue supporting Argentina financially as long as Milei’s administration maintained “good policies,” regardless of the election outcome.

Bessent also announced that the Treasury has recently made several purchases of Argentine pesos, reinforcing Washington’s commitment to financial cooperation with Buenos Aires.