U.S. Backs Argentina: A Lifeline Amid Economic Crisis

The U.S. Treasury has finalized a significant $20 billion currency swap agreement with Argentina, purchasing pesos on the open market. This move aims to stabilize the country's financial market, fulfilling a promise by President Donald Trump. As a result, both the Argentine peso and dollar bonds surged significantly.

Announced by U.S. Treasury Secretary Scott Bessent, the intervention arrives amid critical meetings with Argentine Finance Minister Luis Caputo and International Monetary Fund officials. This comes after the IMF granted Argentina a $20 billion loan to address its liquidity crisis, with the U.S. taking swift action to support Argentina's fiscal strategies.

The support signals a political boost for Argentina's President Javier Milei ahead of the mid-term legislative elections. However, the U.S. intervention has sparked criticism among U.S. Senate Democrats, who argue against supporting foreign governments amidst domestic funding challenges, exemplified by a government shutdown.

(With inputs from agencies.)