Argentina Activates Part of $2.7B Currency Swap with U.S.

Buenos Aires, November 11, 2025 – Total News Agency-TNA– The Argentine government confirmed that a portion of the currency swap agreement between the two countries was activated by the Central Bank of the Republic of Argentina (BCRA). The instrument, dated at $20 billion, was designed to provide external support to Argentina in its effort to stabilize the peso and meet debt maturities. According to market estimates, Argentina has used approximately $2.7 billion from that package to cover key obligations, including repayments to the United States for pre-election currency interventions and payments to the International Monetary Fund (IMF). In the short term, access to external resources allows the BCRA to bolster reserves and provide greater certainty in the foreign exchange and financial markets. For Argentina, the swap activation represents both immediate relief and a strategic risk. However, it also raises internal questions about the transparency of the use of these funds, their fiscal impact, and the degree of political conditioning they might imply. The amount used so far does not negate that the rest of the $20 billion agreement remains pending activation as the program's implementation and the evolution of the Argentine economy progress. In this sense, the estimated $2.7 billion marks a first step that must be watched closely amidst exchange rate volatility and the need for structural reforms in the country. From a technical standpoint, the swap is part of a currency exchange mechanism that allows Argentina to provide guarantees and dollar liquidity without it being formally configured as a traditional bailout. Market attention will be on the BCRA's next move, the pace of swap activation, and official communication about the conditions. This agreement acquires relevance in a global context of high competition for capital flows in Latin America and the redefinition of strategic alliances. U.S. support reinforces the bilateral alliance with Argentina and positions the Milei government as a strategic U.S. ally in Latin America. Bessent stated that the U.S. gains from the mechanism and that the funds come from the U.S. Treasury's Exchange Stabilization Fund, which, in his words, “has never recorded losses.” The full announcement of the agreement was made in October, and an analysis published by Politico noted that the swap is part of a broader U.S. strategy. These figures have not yet been officially ratified by the Argentine government or the U.S. Treasury. Bessent declared that the U.S. seeks to stabilize a regional ally at a time of international tension. The challenge for Buenos Aires will be to demonstrate that it can convert this injection of external confidence into tangible results: exchange rate stabilization, export growth, and reduced financial vulnerability. In this framework, Argentina bets on taking advantage of this line to reinforce its external credibility, while the U.S. The partial use of the swap marks the beginning of that test. However, critics warn that the intervention could generate financial firepower in favor of investment funds or external beneficiaries if clear conditions for control and auditing are not established. However, analysts warn that depending on an external channel with conditions could weaken monetary sovereignty and link the country's economic policy to external demands. In the institutional sphere, U.S. support. A U.S. Congressional report points out that the Treasury Department should inform about the risks, the amounts accumulated in pesos, the exit schedule, and the associated guarantees.