America First? Critics Slam Trump for $20B Buy Argentina Pesos Deal/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. Treasury has purchased Argentine pesos and finalized a $20 billion currency swap with Argentina’s central bank. The move boosts President Javier Milei’s struggling economy but draws sharp criticism from U.S. lawmakers and farmers. Democrats call it a bailout for a political ally, challenging Trump’s “America First” stance just weeks before Argentina’s elections. Milei Secures Lifeline from U.S. Treasury Ahead of Crucial Midterms.
Key Takeaways:
- U.S. directly buys pesos — a rare intervention in foreign currency markets.
- $20 billion currency swap line finalized after four days of high-level talks.
- Argentina’s dollar bonds jump 10%, Buenos Aires stock market up 15%.
- Move sparks backlash from U.S. farmers and lawmakers over “America First” policies.
- Argentina’s President Javier Milei praises Trump and calls U.S. “closest of allies.”
- Critics label it a pre-election favor amid Milei’s shaky political footing.
Deep Look
U.S. Finalizes $20 Billion Currency Swap with Argentina Amid Political and Economic Turmoil
WASHINGTON, D.C. — October 9, 2025 (AP)— In a bold and unusual move, the United States Treasury announced Thursday that it has directly purchased Argentine pesos and finalized a $20 billion currency swap agreement with Argentina’s central bank. The decision, revealed by Treasury Secretary Scott Bessent on social media, is aimed at stabilizing Argentina’s volatile economy just weeks before a pivotal midterm election.
Why It Matters:
The swap deal marks a high-stakes intervention by the U.S. in Latin America’s third-largest economy and deepens financial ties between the Trump and Milei administrations. The deal gives Argentina short-term liquidity relief as it battles hyperinflation, capital flight, and collapsing investor confidence.
“U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets,” said Bessent.
— Scott Bessent, U.S. Treasury Secretary
The four-day negotiations took place in Washington between Bessent and Argentine Economy Minister Luis Caputo, culminating in a deal that Milei hailed as a lifeline for his pro-market agenda.
Milei Reacts: “A Hemisphere of Freedom”
Argentine President Javier Milei, who has branded himself a libertarian and strong supporter of U.S. President Donald Trump, welcomed the swap as a major show of confidence in his leadership.
“Together, as the closest of allies, we will make a hemisphere of economic freedom and prosperity,”
— President Javier Milei, via social media
Milei, elected in 2023, promised radical change and aggressive austerity, but his administration has faced deepening unrest, a stalled economy, and increasing political resistance. The swap deal is likely to be seen domestically as a symbolic victory as he approaches midterm elections on October 26.
Backlash in Washington
Despite praise from Argentine officials, the deal drew sharp criticism from U.S. lawmakers, particularly among Democrats and American farmers who argue that the move contradicts Trump’s long-touted “America First” platform.
“It is inexplicable that President Trump is propping up a foreign government, while he shuts down our own,”
— Sen. Elizabeth Warren (D-MA)
Shortly after the announcement, Senate Democrats introduced the “No Argentina Bailout Act,” which would block the U.S. Treasury from using its Exchange Stabilization Fund (ESF) to assist Argentina or other foreign nations without congressional oversight.
Farmers, especially in the Midwest, are also voicing frustration. Argentina has recently ramped up soybean exports to China, undercutting U.S. sales and deepening trade tensions.
Swap or Bailout? Treasury Pushes Back
Secretary Bessent was quick to refute claims that the currency swap amounted to a bailout, insisting it was a “market stabilization tool” rather than a cash infusion.
Nonetheless, the lack of public conditions or oversight raised questions among analysts who see the deal as more political than strategic.
“Your steadfast commitment has been remarkable,”
— Luis Caputo, Argentina’s Economy Minister, in a message to Bessent
Argentina’s Ongoing Financial Crisis
Argentina owes more than $41.8 billion to the International Monetary Fund (IMF) — the largest debt ever held by a single country to the institution. Repeated bailout attempts have failed to stabilize its economy, and inflation remains among the highest in the world.
President Milei rose to power promising to end the country’s “economic insanity” by slashing public spending. However, his radical reforms have so far failed to spark recovery, and his approval rating has suffered following a disastrous performance in last month’s local elections.
The currency swap offers a temporary reprieve, boosting investor confidence and foreign reserves — but without long-term economic reforms or political stability, it may only delay another financial reckoning.
Markets React
- Argentina’s dollar bonds rose 10% following the announcement
- Buenos Aires stock exchange surged 15%
- Argentine peso stabilized briefly after weeks of heavy losses
Financial markets responded positively in the short term, interpreting the deal as a signal that Argentina won’t default imminently — though analysts remain cautious.
Political Loyalty or Economic Strategy?
The swap has also reignited speculation about the personal and ideological bond between Trump and Milei. With Trump positioning himself as the guardian of conservative populism in the Western Hemisphere, some analysts view this deal as a geopolitical alliance-building move, rather than purely economic strategy.
“This isn’t about helping Argentina. This is about rewarding an ally in Milei,” said a Washington-based Latin America policy expert.
“It’s Trump’s Monroe Doctrine 2.0 — loyalty for liquidity.”
What’s Next?
- October 22: Senate committee hearings expected on the “No Argentina Bailout Act”
- October 26: Argentina’s crucial midterm congressional elections
- End of 2025: IMF debt payment deadline looms
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