U.S. and Argentina Seal $20 Billion Currency Swap Amid Peso Strengthening
The U.S. and Argentina have agreed to a $20 billion currency swap to stabilize the Argentine peso. Announced after a high-level finance meeting in Washington, the deal reflects U.S. efforts to influence Argentina's economic policy ahead of elections. Reactions are mixed amid concerns over currency valuation and political implications.
The United States and Argentina have finalized a $20 billion currency swap agreement aimed at stabilizing the Argentine peso, U.S. Treasury Secretary Scott Bessent announced. This agreement follows crucial finance discussions between the two countries in Washington and marks a significant step in U.S.-Argentina financial relations.
The announcement came just before the Argentine peso market closed, causing the currency to strengthen slightly. Despite Argentina's market being closed on Friday, Argentine dollar bonds experienced a sharp increase, signaling positive investor response.
While some experts view the swap as a timely intervention to support Argentina's struggling economy, others express concern over the long-term economic impact and underlying political intentions, especially given the proximity to Argentina's upcoming elections.
(With inputs from agencies.)
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