Mon Oct 20 21:58:07 UTC 2025: News Article:

Argentina Secures $20 Billion Exchange Rate Deal with U.S. Ahead of Midterm Elections

BUENOS AIRES – In a move aimed at stabilizing its volatile currency markets, the Central Bank of the Argentinian Republic (BCRA) announced Monday it has reached a $20 billion exchange rate stabilization agreement with the United States Treasury Department. The deal comes just six days before crucial midterm elections, where President Javier Milei’s party is seeking to expand its presence in the legislature.

The BCRA stated the agreement outlines terms for bilateral currency swap operations, providing the central bank with additional tools to manage foreign exchange and capital market fluctuations and bolstering its international reserves. While technical details were not immediately disclosed, the BCRA emphasized the agreement is part of a comprehensive strategy to address market volatility.

The Argentinian peso closed at a record low of 1,475 per dollar on the day of the announcement, underscoring the urgency of the situation.

U.S. Secretary of the Treasury Scott Bessent previously indicated the arrangement would be backed by International Monetary Fund Special Drawing Rights held in the Treasury’s Exchange Stabilization Fund. He has emphasized that continued U.S. support is contingent upon the Milei government’s commitment to fiscal austerity and economic reforms aimed at fostering private-sector growth.

Argentinian Minister of Economy Luis Caputo had expressed hope the swap deal framework would be finalized before the midterm vote. The political stakes are high, as former US President Donald Trump commented that the US would not “waste its time” with Argentina if Milei’s party loses. Bessent clarified that US support depended on the government’s policy, but that a positive election result for Milei would discourage any efforts to reverse his reforms.

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