U.S. Treasury Denies Argentina Bailout Allegations
U.S. Treasury Secretary denied claims that financial aid to Argentina is a bailout, emphasizing that it involves no direct fund transfer. The U.S. has invested in Argentine pesos and established a $20 billion currency swap line, asserting Argentina's peso is undervalued and the Treasury's Exchange Stabilization Fund remains secure.
- Country:
- United States
In a move to address mounting speculations, the U.S. Treasury Secretary clarified on Thursday that the Trump administration's financial assistance to Argentina is not a bailout. The Treasury's Exchange Stabilization Fund is not transferring money directly to Buenos Aires, as per official statements.
Scott Bessent, speaking on Fox News, emphasized that the U.S. intervention involved purchasing Argentine pesos on the open market. A framework deal for a $20 billion currency swap line with Argentina, Latin America's third-largest economy, was also finalized.
Bessent commented that the Exchange Stabilization Fund has historically remained profitable, projecting similar outcomes with this venture. He noted that the Argentine peso is currently undervalued, indicating room for potential recovery in value.
(With inputs from agencies.)
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