The United States is negotiating a $20 billion swap line with Argentina’s central bank and is prepared to provide full support, Treasury Secretary Scott Bessent said on Wednesday in a post on X.
Bessent confirmed that the U.S. is ready to buy Argentina’s U.S. dollar bonds as needed. He also noted that standby credit from the Exchange Stabilization Fund will be available to strengthen Argentina’s economy.
“Argentina has the tools to fight speculators, including those who want to destabilize markets for political gain,” Bessent stated.
He added that the U.S. is prepared to purchase both primary and secondary government debt. At the same time, Washington is working with Argentina’s government to phase out the tax holiday for commodity exporters converting foreign exchange.
Markets reacted positively to the announcement. Argentina’s government bond prices surged, and stocks edged higher after Bessent detailed his earlier pledge to support Latin America’s third-largest economy and its president, Javier Milei, a close ally of President Donald Trump.
The Argentine peso also strengthened this week, reversing last week’s sharp losses, when the central bank spent more than $1 billion in reserves to defend the currency. Investor sentiment had been shaken by corruption allegations within Milei’s circle and a surprise defeat in Buenos Aires elections, raising doubts over his austerity program.
Bessent’s statement on X helped reassure investors, especially after President Trump said Argentina did not need a bailout but confirmed U.S. backing. In an interview with Fox Business Network, Bessent stressed that the U.S. stands firmly with Milei and Argentina. He emphasized that markets are still haunted by Argentina’s history of financial crises but insisted Milei represents real change.
Milei, who met with Trump and Bessent on Tuesday, thanked Washington for its commitment. “Thank you President Donald Trump and Secretary Scott Bessent for your firm support and confidence in the Argentine people,” he posted on X. He added that Argentina values its friendship with the U.S. and aims to build stability, prosperity, and freedom together.
Following the news, Argentina’s 2030 bonds rallied sharply, rising more than four cents. Economy Minister Luis Caputo also expressed gratitude, writing on X: “Let’s all work together to make our country great again!”
