The United States is in talks to establish a $20 billion swap line with Argentina and is prepared to purchase the country’s dollar bonds, US Treasury Secretary Scott Bessent said Wednesday.
The potential deal comes as a show of support from President Donald Trump for Argentina’s libertarian leader, Javier Milei, following a high-level meeting between the two leaders and senior officials on the sidelines of the UN General Assembly in New York on Tuesday.
“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.”
The announcement helped trim losses in Argentine dollar bonds, reflecting investor relief at Washington’s backing.
The talks mark the strongest signal yet of US confidence in Milei’s economic program, as the Argentine president seeks to stabilize inflation and shore up reserves amid ongoing fiscal challenges.
