BUENOS AIRES: Argentina has formalised a currency swap agreement with the United States for up to $20 billion aimed at contributing to the South American nation’s economic stability.
The nation’s central bank announced the deal on Monday as part of substantial financial support from Donald Trump’s administration.
Trump remains a strong backer of Argentine President Javier Milei, who faces pressure ahead of mid-term elections on October 26.
The peso has experienced wild fluctuations ahead of the vote, disrupting Argentines’ savings and spending plans.
Many citizens fear the currency could lose further value in the coming weeks.
US Treasury Secretary Scott Bessent last week announced efforts to secure a separate $20 billion facility from private banks and sovereign wealth funds.
This additional funding would support Argentina’s embattled economy amid ongoing challenges.
Milei, once celebrated globally for his budget-slashing libertarian policies, approaches the polls with diminished standing.
His failure to stabilise the ailing peso persists despite spending nearly all the Central Bank’s dollar reserves to support it.
Inflation, initially curbed after Milei took office in December 2023, has been rising again month-on-month.
During Milei’s White House visit last week, Trump threatened to withdraw aid if his ally suffered electoral defeat.
“If he loses, we are not going to be generous with Argentina,“ Trump stated clearly. – AFP
