US EditionUS Treasury's support for Argentina gives peso, Milei friendly leg-up, for now
The US is negotiating a $20 billion swap line and considering direct currency and debt purchases to stabilize Argentina's economy amid political and financial volatility, Treasury Secretary Bessent said.
- On Monday, September 22nd 2025, Milei traveled to New York to seek US support, with Bessent saying, `Yesterday, President Donald Trump and I spoke extensively with President Javier Milei and his senior team in New York.`
- After losing Buenos Aires on September 7, Milei faced sharp peso declines and rising urgency before the Argentina midterm elections on October 26, 2025.
- Markets reacted immediately, with the MERVAL index rising 6%, sovereign bonds like the AL41 jumping 18.5%, and the country risk index plunging 22% from 1,516 to 1,136 basis points as the US dollar quote fell from AR$1,515 to AR$1,470.
- Bessent's public assurances calmed markets and signalled US engagement as the US Treasury offered stabilization tools, easing volatility and providing political relief to Javier Milei ahead of October 26.
- International lenders signalled medium-term support, including up to US$4 billion from the World Bank and US$3.9 billion from the Inter-American Development Bank, while IMF projections foresee inflation falling in the coming years.
385 Articles
385 Articles
Why Argentina is looking to the Trump administration for a bailout
President Donald Trump vowed to help out his Argentine counterpart Javier Milei on Sept. 23, 2025, a day after the U.S. administration said “all options” were on the table in regard to a bailout for the Latin American country’s rocky economy. A day after Trump and Milei’s meeting on the sidelines of the United Nations General Assembly in New York, U.S. Treasury Secretary Scott Bessent said he was prepared to lend Argentina up to US$20 billion vi…
Javier Milei’s last chance
“Argentina is a systemically important US ally in Latin America”, tweeted US Treasury Secretary Scott Bessent on Monday morning. It was not a moment too soon for Javier Milei. “The US Treasury stands ready to do what is needed within its mandate to support Argentina,” wrote Bessent. “All options for stabilization are on the table.” With this announcement, the US government indicated its readiness to do whatever was necessary to ensure the succes…
The Conversation
Why Argentina is looking to the Trump administration for a bailout − and what the US Treasury can do to help
A sharp sell-off of the peso has seen President Javier Milei seek a financial lifeline from the United States. Washington seems happy to help out.
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