US Treasury Secretary Scott Bessent stated on Sunday that Trump’s endorsement and the US$20 billion U.S. currency swap with Argentina have facilitated President Javier Milei’s strong performance in October’s midterm elections. In an interview, Bessent remarked: “[Trump] endorsed President Milei.” Clearly, President Milei surpassed all expectations in the polls, achieving a significant victory. It appears that we effectively utilized U.S. balance sheets as a tool for statecraft. Bessent asserted that it was “very clear” that the Kirchnerist opposition “were trying to cause a market disturbance to affect the elections.” He stated that Argentina has become “the centerpiece of the [United States] strategy in Latin America.” Bessent asserted that the White House seeks to “regain our great Latin American allies within our sphere of influence.” He identified Paraguay, along with Chile and Bolivia, which have recently transitioned from left-wing administrations to right-wing leadership, and Colombia, where the party of outgoing leftist President Gustavo Petro is experiencing low polling numbers.
The US Treasury Secretary remarked that Argentine president Javier Milei is “going from a great campaigner and great thinker to becoming a mature and great politician,” and referred to him as “a great ally” to the U.S.The most significant aspect was President Milei’s selection of an entirely new cohort. “Young people voted for him, and the poorest segment of society voted for him, because they are the ones who get hurt the most under Kirchnerism and Peronism,” Bessent said. Bessent also justified the decision to provide Argentina with a currency swap, asserting that the arrangement was inaccurately reported. The financial assistance provided by the U.S. has been characterized as a bailout, a sentiment echoed in both the United States and Argentina. A support package from Washington was initially unveiled in September. Initially, U.S. authorities indicated that the measures could encompass the acquisition of the nation’s USD bonds, a standby credit line, and a currency swap with the Central Bank. Ultimately, the primary mechanism of support was the swap. Other components of the package, such as a significant agreement with private banks, did not come to fruition.
In October 2025, the United States and Argentina reached an agreement on a currency swap line valued at US$20 billion, which required Buenos Aires to “activate” in order to access the funds. “Everyone was saying, ‘Oh, they’re providing the Argentines with US$20 billion.’ No, we are not. That action was never undertaken by us. “It was a loan,” he stated. “We successfully strengthened Argentina, connected the government, united the nation, and, most crucially, engaged the populace.” Bessent asserted that Argentina has repaid US$2.5 billion and that the US profited from the loan, describing it as “a great deal for everyone.” Despite the confidentiality surrounding the amount and terms, economists in Argentina examined Central Bank data from last November and determined that Argentina had utilized a portion of the swap. Experts indicated that the nation utilized those U.S. dollars to finance the U.S. Treasury’s intervention prior to the mid-term elections on October 26, during which the Trump administration acquired pesos to mitigate a run on the South American currency. Analysts estimated that the U.S. invested significantly more than $2 billion to support the peso, although this figure remains undisclosed.
In November, Bessent confirmed that Argentina had, in fact, activated the swap. Bessent was not the sole individual to mention the currency swap in recent discussions. On Saturday, comedian Marcello Hernández portrayed Milei in a skit on Saturday Night Live. In a Spanish accent reflective of Argentine nuances, during the “Trump Awards,” a satirical take on the Oscars, he awarded the accolade for best foreign-language film, which ultimately was revealed to be “nothing.” He stated “Leader, visionary and the individual who, quite literally, transferred US$20 billion to me. All of this characterizes my closest associate and preferred physique, Donald Trump.”