The Trump administration has finalized plans to provide a $20 billion lifeline to Argentina, Treasury Secretary Scott Bessent said Thursday via social media. Additionally, the United States “directly” purchased Argentine pesos, Bessent said, a rare move that marks the latest step in an attempt to stabilize the country’s financial market.

Bessent did not specify how many pesos the United States had purchased.

Representatives from the Treasury Department did not immediately respond to CNN’s request for comment.

“The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets,” Bessent wrote.

The $20 billion lifeline framework Bessent announced is known as a “currency swap,” which gives Argentina’s central bank the ability to exchange pesos for US dollars with the Treasury. Doing so can help stabilize its financial markets by injecting more liquidity.

The Argentine peso has significantly devalued against other currencies since President Javier Milei, a close ally of President Donald Trump, suffered major defeats in local elections, raising doubts that he’ll hold on to his legislative majority in midterm elections later this month.

Trump has praised the chainsaw-wielding libertarian and endorsed his reelection.

But the Trump administration’s attempt to rescue Milei’s economy has been met with some criticism, given Trump preaches an “America First” agenda.

Bessent defended the administration’s move, saying, “Argentina faces a moment of acute illiquidity. The international community — including @IMFNews — is unified behind Argentina and its prudent fiscal strategy, but only the United States can act swiftly.”

Source - CNN