Economy|Business and EconomyArgentina’s central bank says it signed $20bn currency swap deal with USThe central bank said deal was part of a comprehensive strategy to help it respond to forex and capital markets volatility.
The Central Bank of the Argentinian Republic (BCRA) announced the signing of a $20 billion exchange rate stabilization agreement with the United States Treasury Department. This agreement, established six days prior to a crucial midterm election,…
The Central Bank of the Argentinian Republic (BCRA) announced the signing of a $20 billion exchange rate stabilization agreement with the United States Treasury Department. This agreement, established six days prior to a crucial midterm election, outlines terms for bilateral currency swap operations between the United States and Argentina. However, no technical details have been disclosed in the official statement.
The central bank stated that these operations will enhance its monetary and exchange rate policy instruments and increase the liquidity of its international reserves. This agreement is part of a broader strategy to strengthen the BCRA's capacity to manage foreign exchange and capital markets volatility.
The Argentinian peso reached a record low, decreasing by 1.7 percent to close at 1,475 per dollar. Meanwhile, the US Treasury has not released any further details regarding the new swap line, nor has it issued an official statement about the arrangement.
However, no technical details have been disclosed in the official statement.
US Secretary of the Treasury Scott Bessent mentioned that the arrangement would be supported by International Monetary Fund Special Drawing Rights, held in the Treasury's Exchange Stabilization Fund and converted to dollars. He emphasized that no additional conditions would be imposed on Argentina, provided that President Javier Milei's government continues its fiscal austerity and economic reform programs aimed at promoting private-sector growth.
In recent weeks, several US purchases of pesos have been announced, though detailed information has not been disclosed. Argentinian Minister of Economy Luis Caputo expressed hope that the swap deal framework would be finalized before the midterm parliamentary vote on Thu, Oct 26, 2025, where Milei's party aims to increase its legislative presence.
US President Donald Trump commented that continued US engagement with Argentina would depend on the outcomes of the midterm vote, though Bessent clarified that support would be based on effective policies rather than election results. A favorable result for Milei's party could potentially prevent any efforts to repeal current policies.
Based on reporting by Al Jazeera.
