The central bank said the deal was part of a comprehensive strategy to help it respond to volatility in currency and capital markets.
Posted on October 20, 2025
The Central Bank of the Argentine Republic (BCRA) said it signed an exchange rate stabilization agreement worth $20 billion with the US Treasury Department, six days before a key midterm election.
The central bank's statement on Monday said the agreement sets out terms for bilateral currency swap operations between the United States and Argentina, but did not provide technical details.
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The central bank said: “These operations will allow the BCRA to expand its set of monetary and exchange policy instruments, including the liquidity of its international reserves.”
The Argentine peso closed at a record low, falling 1.7 percent on the day to finish at 1,475 per dollar.
The BCRA said the pact was part of a comprehensive strategy to improve its ability to respond to volatility in the foreign exchange and capital markets.
The U.S. Treasury did not immediately respond to a request for details about the new swap line and has not issued its own statement on the deal.
U.S. Treasury Secretary Scott Bessent said last week that the deal would be backed by International Monetary Fund Special Drawing Rights held in the Treasury's Foreign Exchange Stabilization Fund that will be converted to dollars.
Bessent has said the United States would not impose additional conditions on Argentina beyond President Javier Milei's government continuing its fiscal austerity and economic reform programs to encourage greater private sector growth.
He has announced several US purchases of pesos in recent weeks, but has declined to reveal details.
midterm vote
Argentine Economy Minister Luis Caputo said last week he hoped the framework of the swap deal would be finalized before the Oct. 26 midterm parliamentary vote, in which Milei's party will seek to increase its minority presence in the legislature.
Milei, who has tried to solve Argentina's economic problems through tax spending cuts and a drastic reduction in the size of government, has suffered a series of recent political defeats.
US President Donald Trump said last week that the United States would not “waste time” with Argentina if Milei's party loses in the midterm vote. The comment briefly shocked local markets until Bessent clarified that continued US support depended on “good policies,” not necessarily the outcome of the vote.
He added that a positive result for Milei's party would help block any efforts to repeal the policy.
