The Trump administration is proposing to double aid to Argentina following a meeting between President Donald Trump and Argentina’s President Javier Milei.
Previously, the U.S. agreed to a $20 billion currency swap with Argentina’s central bank amid Argentina’s economic turmoil.
What they’re saying: Treasury Secretary Scott Bessent announced plans for a $20 billion facility complementing the existing swap: “We are working on a $20 billion facility that would complement our swap line, with private banks and sovereign funds that, I believe, would be more focused on the debt market.”
Bessent described this new aid as “a private-sector solution,” noting “many banks are interested in it and many sovereign funds have expressed interest.”
At a White House meeting, Trump expressed willingness to help “our neighbors” but tied the aid to Milei’s political future, warning, “If he loses, we are not going to be generous with Argentina.”
THe big picture: This would bring total U.S. aid to Argentina up to $40 billion, combining public funds and private-sector financing.
Since 1996, the U.S. has only bought the currency of another country three times before, highlighting the significance of this support.
Following Trump’s comments, the Argentine peso depreciated about 0.7%, weakening against the dollar to 1,395 pesos from 1,385 pesos.
The Trump administration argues that stabilizing Argentina’s financial markets is crucial to protecting other global economies.
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