US Launches $20 Billion Financial Rescue to Stabilize Argentina’s Peso

The United States has stepped in to support Argentina’s struggling economy with a $20 billion financial package aimed at stabilizing the peso and restoring market confidence. Treasury Secretary Scott Bessent confirmed that Washington finalized a currency swap framework with Argentina’s Central Bank and conducted a rare direct purchase of pesos after local efforts to halt the currency’s decline failed.
The move, backed by President Donald Trump, is designed to help President Javier Milei’s administration ahead of Argentina’s October 26 midterm elections. Bessent described Argentina’s difficulties as “a moment of acute illiquidity,” expressing confidence in the country’s fiscal discipline and potential for recovery. He noted that the US Treasury remains ready to take “exceptional measures” if necessary to ensure financial stability.
Markets reacted positively to the announcement, with Argentine dollar bonds rising sharply and the peso reversing earlier losses to close stronger against the dollar. The agreement also sparked discussions about encouraging new US investments in Argentina.
The financial lifeline follows Milei’s recent talks with both the US Treasury and the International Monetary Fund, which remains Argentina’s largest creditor. While the intervention is expected to stabilize markets in the short term, it has prompted debate in Washington over how the plan aligns with America’s broader economic priorities.