Argentina acquired US$808 million in special drawing rights from the US Treasury to address its recent interest obligations to the International Monetary Fund, circumventing the use of a swap line that exists between the two nations, as reported. Unnamed government officials informed that the purchase constituted a routine balance-of-payments operation, rather than a new activation of the US$20-billion swap line that the administration of President Donald Trump extended to Argentina last year, as President Javier Milei’s libertarian government confronted a midterm election challenge.
On January 29, Argentina’s government acquired special drawing rights valued at US$808 million, an international reserve asset utilized by the IMF, as reported by the US Treasury website. Argentina faced interest payments of US$837 million due on February 1, as reported on the IMF website. Argentina is set to undergo the second review of its US$20-billion program with the IMF this month, which has the potential to release US$1 billion. As of now, Argentina has secured US$14 billion from the US$20 billion program established in April 2025.
US Treasury Secretary Scott Bessent extended a comprehensive rescue package to Milei, a prominent US ally in Latin America, as he confronted a market selloff prior to his party’s success in the midterm elections in late October, which subsequently shifted investor sentiment positively. The Treasury acquired Argentine pesos to bolster investor confidence. Argentina settled the US$2.5 billion it had drawn from the swap, utilizing resources from an undisclosed multilateral lender in early January.