Washington: U.S. President Donald Trump welcomed Argentine President Javier Milei to the White House on Tuesday, in a high-profile meeting that coincided with the announcement of a $20 billion currency swap designed to support Argentina’s struggling economy. The initiative, which involves the United States providing dollars in exchange for Argentine pesos, marks one of the largest bilateral financial interventions in recent years and underscores the deepening economic and political ties between the two nations.
The $20 billion agreement, confirmed by U.S. Treasury Secretary Scott Bessent, is intended to inject immediate liquidity into Argentina’s financial system. By purchasing pesos directly from Argentina’s central bank, the U.S. aims to shore up confidence in the peso and stabilize local markets at a time when the South American country faces significant economic uncertainty. Officials described the move as a strategic effort to strengthen Argentina’s economic resilience while aligning with broader U.S. interests in the Western Hemisphere.
For President Milei, the financial support comes at a politically sensitive moment. Argentina is grappling with domestic challenges, including recent setbacks in provincial elections and looming midterm contests scheduled for later this month. Analysts suggest that the bailout could provide a timely boost to Milei’s reform agenda and help limit Beijing’s growing economic influence in the region. Milei expressed gratitude during the meeting, highlighting the importance of deepening bilateral cooperation with Washington.
The announcement, however, has drawn criticism domestically within the United States. Democratic lawmakers questioned the prudence of allocating billions in foreign aid amid ongoing domestic budgetary concerns, including a federal government shutdown. Additionally, U.S. farmers voiced apprehension over Argentina’s increasing role in the global soybean market, which has shifted purchases away from American producers, potentially affecting U.S. agricultural exports.
The White House meeting also served as a symbolic reaffirmation of the personal rapport between Trump and Milei, with Trump referring to the Argentine leader as one of his “favorite presidents.” Treasury Secretary Bessent’s presence at the meeting further emphasized the economic dimension of the relationship, signaling that U.S. support for Argentina extends beyond mere diplomacy into strategic financial collaboration.
As Argentina prepares for its midterm elections, the impact of this $20 billion financial lifeline will be closely monitored both in Buenos Aires and Washington. While the agreement offers immediate relief to Argentina’s markets and a boost to Milei’s administration, it also raises broader questions about the balance of U.S. foreign financial support and domestic priorities. The coming weeks will likely reveal the full implications of this high-stakes partnership on both countries’ political and economic landscapes.