Catenaa, Wednesday, September 24, 2025- The US is discussing a $20 billion swap line with Argentina and is ready to buy the country’s dollar bonds, US Treasury Secretary Scott Bessent said on Wednesday, to prevent excessive volatility in Argentina.
The two leaders and their teams met on the sidelines of the UN General Assembly in New York, and Milei immediately thanked his US counterpart for the “firm support” on Wednesday.
“The Treasury is currently in negotiations with Argentine officials for a $20 billion swap line with the Central Bank,” Bessent said in a post on X. “We are working in close coordination with the Argentine government to prevent excessive volatility.”
Argentina markets, which have been roiled in the past few weeks after a weak showing by Milei in a provincial election, have surged this week in anticipation of US support, first signaled Monday.
The peso climbed 2.4%, while dollar bonds jumped across the curve. Notes due in 2035, some of the most liquid, rose about 4 cents, erasing losses seen since the Buenos Aires election.
Speaking to Fox News on Wednesday morning, Bessent called the aid a “bridge to the election,” referring to Argentina’s midterms on October 26, where Milei is looking to boost his party’s presence in Congress after lawmakers in recent weeks have moved to overturn his vetoes on spending bills.
“I don’t think the market has lost confidence in him, I think the market is looking in the rear view mirror and looking at decades, about a century, of terrible Argentinian mismanagement,” Bessent said.
One Argentine official sees the support as a moment for Milei to shift his currency policy so the central bank can rebuild its depleted foreign reserves.
Monetary officials blew through more than $1 billion last week to keep the peso within a trading range established in April as part of Argentina’s latest deal with the International Monetary Fund.
During his first term in 2018, Trump pushed the IMF to approve an initial $50 billion program for Argentina under then-President Mauricio Macri, a deal that quickly unraveled.
Since then, the IMF has struck two more agreements with Argentina, including the $20 billion package Milei secured this year.
