Besent: “Pursuing Currency Swap and Argentine Bond Purchases” The Donald Trump administration is pushing for a $20 billion currency swap agreement to support Argentina, which is facing economic difficulties. While the U.S. has shown a negative stance towards South Korea’s request for a currency swap linked to a $350 billion investment in the U.S., it has expressed support for Argentina, highlighting the close ties between the two countries’ leaders.
On September 24 (local time), U.S. Treasury Secretary Scott Besent announced via social media platform X (formerly Twitter) that they are working closely with the Argentine government “to prevent excessive volatility in the Argentine market.”
He further explained, “The Treasury is working closely with the Argentine government, along with the central bank, to finalize a $20 billion currency swap agreement and is also prepared to purchase Argentine U.S. dollar-denominated bonds.” Additionally, the possibility of support through a foreign exchange stabilization fund is being discussed.
Previously at the UN General Assembly, President Trump met with Argentine President Javier Milei and expressed his support, stating, “We will assist him, and if he can continue his efforts, there will be significant results.”
The U.S.’s move is based on the close friendship between President Trump and President Milei. Known as the “Trump of South America” for his anti-leftist stance, President Milei shares significant political ideologies with Trump. President Trump has been a strong supporter of Milei, and with Milei facing domestic challenges recently, Trump appears to be proactively offering support. Milei’s approval rating has recently fallen to around 40%, and with losses to the opposition in local elections, securing a majority in next month’s general election looks uncertain. Although austerity measures once reduced unemployment, it has since risen again, leading to public dissatisfaction with cuts to pensions and increased electricity bills.
The U.S. support for Argentina starkly contrasts with its attitude towards South Korea. Following the trade agreement in July, South Korea agreed to a $350 billion investment in the U.S. in exchange for the U.S. lowering mutual tariffs and automobile tariffs to 15%. However, as the U.S. demanded an increased proportion of direct investment from the investment fund, and South Korea responded negatively, there has been a divergence in positions. As the U.S. maintains its stance, President Lee Jae-myung of South Korea has even pushed for the currency swap agreement as a prerequisite to mitigate the impact on the foreign exchange market, but the U.S. has yet to accept South Korea’s position.