Argentina has fully repaid the United States for a currency swap arrangement it used in late 2025 to stabilize its economy, U.S. Treasury Secretary Scott Bessent and Argentina’s central bank confirmed on Friday. The repayment marks the successful conclusion of a swap line agreement originally intended to protect the Argentine peso and support financial stability ahead of key elections.

Details of the Currency Swap Deal

The currency swap framework, valued at $20 billion, was announced in 2025 just days before Argentina’s midterm elections. It allowed the Central Bank of Argentina to access U.S. dollars from the Exchange Stabilization Fund to prop up the peso and prevent devaluation during a politically sensitive period.

According to Treasury Secretary Bessent:

“I am pleased to announce that, reflecting its strengthened financial position, Argentina has both quickly and fully repaid its limited draw on the swap facility with the United States, such that the Exchange Stabilization Fund currently does not hold any pesos.”

Bessent also emphasized continued U.S. support for President Javier Milei, describing the partnership as part of ongoing financial collaboration.

Usage and Repayment Timeline

Local sources reported that $2.5 billion of the $20 billion swap line was utilized, primarily in October 2025. These funds were used to:

• Repay International Monetary Fund (IMF) obligations
• Return foreign currency reserves used to stabilize the peso ahead of the election

Argentina’s central bank confirmed that the swap line was settled in December 2025, two months after its activation, and remains available under the original terms for future contingencies.

Political and Economic Context

The swap deal coincided with a turbulent period in Argentina, including midterm elections and political unrest. President Milei, a libertarian ally of U.S. President Donald Trump, expanded his legislative influence during the elections. Washington’s financial support was seen as a way to stabilize a friendly government and ensure confidence in Argentina’s economic outlook.

Despite its success, the swap line generated criticism in the United States, with detractors arguing that the program acted as a bailout and could disadvantage U.S. agricultural exports competing with Argentina in markets such as China. Bessent maintained that there were no risks to U.S. taxpayers and that the measure reflected the strategic use of economic tools to support international allies.

Argentine Government Response

Argentina’s Economy Minister Luis Caputo expressed gratitude toward Bessent and the Trump administration, highlighting the swift response to economic challenges and political pressures ahead of the election. Caputo underscored that the swap line allowed the government to focus on long-term reforms rather than short-term market instability.

The full repayment of the swap line demonstrates Argentina’s improved financial stability and signals a return of investor confidence in the peso and the country’s broader economy.