U.S. Treasury Secretary Scott Bessent said the Trump administration would be prepared to extend an Foreign Exchange credit line to Argentina if an unexpected outside event threatened the country’s economic progress.
Bessent’s comment at a private meeting in Washington suggests the United States could tap its Exchange Stabilization Fund to support Argentina in case of a no‑fault shock.
Bessent, who recently visited Buenos Aires, told the gathering that if Argentina “stays the course,” the U.S. Treasury would be willing to use the exchange stabilization fund to smooth over their adjustment.
According to the transcript shared with Reuters by an attendee, Bessent said the move would act as a backstop for Argentina’s reforms and help guard against volatility that could derail progress.
He added, “If something happens for no fault to their own, then I think that we at Treasury would be willing to step in and help smooth things over.”
Under libertarian President Javier Milei, Argentina has imposed strict spending cuts and pursued a zero‑deficit target.
On the same occasion, Scott Bessent also discussed the “de-escalation” of the US-China trade war.
Argentina’s reserves stay thin despite $20 billion IMF lifeline
In December 2024, Milei secured a $20 billion loan arrangement with the International Monetary Fund to rein in inflation that briefly exceeded 100 percent. These steps have helped stabilize the peso and cool price increases, earning praise from many economists and investors.
Argentina’s foreign currency reserves are low, though bolstered by the new IMF funds, and its local industries need fresh capital.
Attracting investment will be key to sustaining growth as a top grain exporter with large shale gas and lithium deposits.
Bessent compared Milei’s policies with the approach of former President Mauricio Macri, whose 2018 IMF‑backed reforms faltered after he abandoned key policies.
“The Macri government had an incredible opportunity, and I was a big fan of Mauricio, but he blinked,” Bessent said. “And as soon as he blinked, the market came and got him. My sense is that Milei is not going to blink.”
Milei’s close ideological alignment with Donald Trump has helped strengthen ties between Washington and Buenos Aires, even as Argentina works to emerge from recession and build a more stable fiscal future.
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