\n That means $20 billion US taxpayer dollars will be used to bail out a country led by a close ally of President Donald Trump: chainsaw-wielding, libertarian Javier Milei.\n <\/p>\n
\n \u201cArgentina faces a moment of acute illiquidity,\u201d Treasury Secretary Scott Bessent wrote on X Thursday. \u201cThe US Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets.\u201d\n <\/p>\n
\n Meanwhile, the US federal government is nearing two weeks of being shut down<\/a> and US businesses and industries continue to reel<\/a> from Trump\u2019s ongoing trade war.\n <\/p>\n \n Here are some key details about the administration\u2019s extraordinary financial rescue of Argentina.\n <\/p>\n \n Argentina is at risk of a financial collapse.\n <\/p>\n \n The country\u2019s currency fell sharply after President Milei\u2019s party suffered a significant defeat in elections last month. The losses shook investors\u2019 confidence in Milei\u2019s ability to see through his economic reforms.\n <\/p>\n \n Milei has slashed government spending, cut regulations and fired tens of thousands of public-sector workers since taking office in 2023. His administration has seen some success; inflation in Argentina eased this year to the slowest monthly pace in more than four years.\n <\/p>\n \n The Trump administration has argued that Argentina\u2019s financial strife could spill over into other economies if it isn\u2019t contained swiftly.\n <\/p>\n \n Administration officials say they also see a risk of Argentina, a major economy in South America, strengthening its ties with China.\n <\/p>\n \n The next legislative elections in Argentina take place on October 26.\n <\/p>\n \n On Thursday, Bessent confirmed on social media that Argentina\u2019s bailout is moving forward in two keys ways.\n <\/p>\n \n Bessent said the administration has finalized a $20 billion currency swap agreement with Argentina\u2019s central bank, allowing it to exchange its local currency for the US dollar.\n <\/p>\n \n It\u2019s essentially a $20 billion loan, experts say.\n <\/p>\n \n Trump\u2019s top economic official also said the administration \u201cdirectly\u201d purchased an undisclosed amount of Argentine pesos. It\u2019s only the fourth time since 1996 that the United States has bought another country\u2019s currency, according to the Federal Reserve Bank of New York.<\/a>\n <\/p>\n \n These measures are aimed at stabilizing Argentina\u2019s financial markets.\n <\/p>\n \n The United States has provided foreign countries with financial lifelines before, usually when the stability of the global economy is at risk or when a close geopolitical ally, such as Mexico, finds itself underwater and could damage to US creditors and investors.\n <\/p>\n \n But this bailout isn\u2019t urgent, it\u2019s happening at an awkward time, and critics are accusing Trump of using billions of American dollars just to prop up one of his own personal allies.\n <\/p>\n \n \u201cThe Treasury\u2019s decision to offer a \u2018swap\u2019 in Argentina is really a signal that Washington is willing to wield its financial tools for political purposes in ways that depart from past norms,\u201d wrote Heidi Crebo-Rediker, a former chief economist at the State Department, and Douglas Rediker, a former US representative on the International Monetary Fund\u2019s executive board, in a Financial Times column<\/a> published on October 2.\n <\/p>\n \n This is all while the US government is shut down, which has resulted in more than a million federal workers being furloughed or working without pay.\n <\/p>\n \n \u201cIt is inexplicable that President Trump is propping up a foreign government, while he shuts down our own,\u201d Democratic Sen. Elizabeth Warren of Massachusetts said in a statement on Thursday.\n <\/p>\n \n Meanwhile, the result has been a one-two punch against American farmers from Trump\u2019s own policies. American farmers are having a tough year<\/a>, in no small part because of Trump\u2019s bid to reshape global trade. And Argentina\u2019s bailout inadvertently worsened their plight.\n <\/p>\n \n China, a major buyer of US soybeans, halted purchases of the commodity in May in response to Trump\u2019s trade war. Then, after Argentina temporarily scrapped export taxes on grains, China swooped in and bought tens of thousands of pounds of Argentine soybeans instead.\n <\/p>\n \n \u201cWhy would USA help bail out Argentina while they take American soybean producers\u2019 biggest market??? We shld use leverage at every turn to help hurting farm economy Family farmers shld be top of mind in negotiations by representatives of USA,\u201d Republican Sen. Chuck Grassley of Iowa wrote on X on September 25.\n <\/p>\n \n Beyond Millei, China, and the Argentine treasury, critics say the bailout also stands to greatly benefit wealthy fund managers who are major holders of Argentine debts and assets.\n <\/p>\n![\"Argentina's](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/gettyimages-2235806157.jpg\")
<\/p>\n![\"Treasury](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/gettyimages-2237019028.jpg\")
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