US negotiating $20 bn swap line with Argentina, Treasury Secretary Scott Bessent says

The U.S. is negotiating a $20 billion swap line with Argentina’s central bank and may buy its dollar bonds, Treasury Secretary Scott Bessent said. Washington also plans standby credit through the exchange stabilization fund and could purchase government debt. Bessent said Argentina has tools to counter speculators and is working with the U.S. to end tax holidays for commodity exporters.

The United States has expressed strong willingness to back Argentina during its ongoing financial challenges. U.S. Treasury Secretary Scott Bessent announced on Wednesday that Washington is in talks with Argentina’s central bank for a $20 billion swap line — a major step to bolster the country’s foreign reserves and stabilize its currency.

Bessent shared the update on X (formerly Twitter), highlighting broader U.S. support measures for Argentina, including debt purchases and fiscal reforms.

Key Highlights

• $20 Billion Swap Line in Talks: Negotiations are underway between the U.S. Treasury and Argentina’s central bank. If finalized, the swap line will provide much-needed liquidity.

• Debt Purchases Planned: The U.S. is prepared to buy both primary and secondary government debt, signaling confidence in Argentina’s financial recovery.

• Ending Commodity Tax Holiday: Washington is working with Argentina’s government to end the foreign exchange tax holiday for commodity producers, a move aimed at improving dollar inflows.

• Broader Support Commitment: Bessent emphasized that the U.S. “stands ready to do what is needed” to stabilize Argentina’s economy.

Why It Matters?

Argentina has been grappling with severe foreign currency shortages, high inflation, and fiscal imbalances. A U.S. swap line could help restore market confidence, ease pressure on the peso, and provide breathing space for reforms. Moreover, U.S. debt purchases could reduce financing risks while ensuring Argentina remains connected to global capital markets.

This move also underlines Washington’s strategic interest in strengthening ties with Buenos Aires amid rising global economic uncertainty.