US Treasury Secretary Scott Bessent has publicly declared the nation’s high-stakes intervention in Argentina’s currency market a resounding success, confirming full repayment of American financial support with substantial profits. The controversial maneuver, executed last year during the Argentine peso’s sharp decline, was designed to prevent further economic turmoil and bolster President Javier Milei’s political faction ahead of critical midterm elections.
The strategic operation involved purchasing depreciating pesos and establishing a currency swap facility that allowed Argentina to exchange pesos for US dollars. This intervention effectively halted the currency’s downward spiral, particularly after Milei’s party achieved a decisive electoral victory. According to official reports, Argentina’s central bank settled the swap arrangement in December, utilizing only $2.5 billion of the available $20 billion facility.
Bessent characterized the outcome as an ‘America First homerun deal’ that simultaneously stabilized a key ally and generated tens of millions in profit for American taxpayers. The Treasury Department had faced significant criticism from Democratic opponents who questioned the wisdom of risking public funds in a nation with Argentina’s volatile financial history.
Additional disclosures revealed separate financial support totaling $872 million involving International Monetary Fund reserves, though the Treasury has not provided detailed commentary on this transaction. While acknowledging the operation’s financial success, economic analysts caution that Argentina continues to face substantial challenges, including depleted foreign reserves and overreliance on external support mechanisms.