President Javier Milei\u2019s top economic officials said Wednesday they hope Argentina’s US$20-billion currency swap with the United States will be finalised within two weeks.<\/p>\n
Speaking at an event in Washington, Economy Minister Luis Caputo and Central Bank Governor Santiago Bausili voiced optimism about Argentina\u2019s prospects and highlighted the strong backing it has received from the Trump administration in recent days.<\/p>\n
\u201cHopefully very soon we will be able to execute the framework agreement for the swap,\u201d Caputo told an audience at the Adrienne Arsht Latin America Center of the Atlantic Council.<\/p>\n
Bausili confirmed that Argentina and the US Treasury had reached a conceptual framework for the US$20-billion facility, a move designed to bolster liquidity and confidence given heightened market volatility ahead of the October 26 midterm elections.<\/p>\n
The Milei administration is hopeful of finalising the agreement before the elections take place, said Bausili.<\/p>\n
Earlier in the day, Treasury Secretary Scott Bessent told Axios that Argentina could receive up to US$40 billion if a \u201cfacility\u201d with private-sector support is activated. He said the plan would be \u201cadjacent\u201d to the US government swap line, with interest from banks and sovereign wealth funds.<\/p>\n
\u201cThe US government is ready and prepared to work on many different fronts,\u201d Caputo said. The currency swap will help Argentina maintain a tight monetary stance, leaving \u201cno doubt that we can deal with this,\u201d he added.<\/p>\n
The remarks came a day after Milei and senior Argentine officials met with US President Donald Trump and Bessent at the White House.\u00a0<\/p>\n
Washington reaffirmed its political and financial support for Milei\u2019s market-oriented reform programme. Talks are ongoing over additional support measures.<\/p>\n
\nExchange rate policy<\/strong><\/h2>\nCaputo and Bausili, former colleagues at JP Morgan and Deutsche Bank, were asked about further US support and Washington\u2019s stance on Argentina\u2019s ties with China.<\/p>\n
Market interventions, additional peso purchases and talks on a bilateral trade deal are all under discussion, though Caputo said he could not yet disclose details.<\/p>\n
\u201cI don\u2019t think the swap with the US will be the only tool; it will depend on the analysis and economic conditions,\u201d Bausili said.<\/p>\n
Asked whether conditions were attached to the swap, Bausili did not answer directly, , referring to previous comments from Bessent that Washington is not concerned about Argentina\u2019s existing US$18-billion currency swap with the Chinese central bank.<\/p>\n
Bausili also defended Argentina’s exchange-rate band, introduced in April to manage peso volatility during the transition toward a freer float. Some economists have urged speeding up that process after the elections.<\/p>\n
\u201cIn April we moved away from a crawling peg to a wider band that allows the market to operate freely, while containing excessive swings,\u201d said the Central Bank chief. \u201cGiven the political noise, we see no reason to recalibrate the regime. It remains consistent and well-calibrated.\u201d<\/p>\n
Both officials acknowledged that Argentine markets and assets were under pre-election market stress, but noted similar pressures before elections in 2019 and 2023. Bausili, however, argued that recent financial tensions were a result of political uncertainty rather than economic weakness.<\/p>\n
\u201cWe have an economy built on iron fundamentals,\u201d he said. \u201cFiscal policy is on track, the Central Bank\u2019s balance sheet has been repaired and inflation is steadily coming down.\u201d<\/p>\n
Caputo downplayed fears that reforms could stall if the ruling Libertad Avanza party loses the midterms. \u201cThese elections are important, but not decisive for our economic strategy,\u201d he said. \u201cOur commitment to fiscal discipline, monetary prudence and reform will not change, regardless of the outcome.\u201d<\/p>\n
\u00a0<\/p>\n
Fiscal discipline and structural reform<\/strong><\/h2>\nCaputo noted that Argentina posted its first fiscal surplus in more than a century after running deficits in 124 of the past 130 years.<\/p>\n
\u201cWe reached fiscal equilibrium by cutting government spending by 15 percent,\u201d he said. \u201cFor 20 months we\u2019ve maintained a primary surplus. That is the foundation of stability.\u201d<\/p>\n
The economy minister warned that Argentina must avoid the \u201cpolitical volatility\u201d that has long deterred investors. Stability and policy continuity, he said, are essential to rebuild confidence and attract foreign direct investment.<\/p>\n
Caputo highlighted an unprecedented surge in foreign investment commitments, stating that Argentina had secured roughly US$100 billion in funding for new projects across various sectors, including energy, mining, and technology.\u00a0<\/p>\n
\u201cThe level of investor interest we\u2019re seeing is remarkable. We\u2019ve approved a new regime for large investments over US$200 million [Milei\u2019s \u2018RIGI\u2019 scheme], and already have around US$80 billion in announced or ongoing projects,\u201d he said.<\/p>\n
\u201cFor decades, Argentina relied on agriculture for its foreign currency,\u201d Caputo continued. \u201cWithin four years, the surplus from mining and energy will double that of agriculture. That\u2019s a structural transformation.\u201d<\/p>\n
Both officials framed Argentina\u2019s transformation as a long-term project to make it the \u201cthe freest and fastest-growing\u00bb country \u201cin the next 20 years,\u201d with policies geared towards private-sector investment, deregulation and international integration.<\/p>\n
Caputo closed by thanking US officials for their \u201cprofessionalism and commitment,\u201d calling the talks a turning point in bilateral ties.<\/p>\n
\u201cThe US is our most powerful ally,\u201d he said. \u201cThis is a historic opportunity \u2013 and we are not going to waste it.\u201d<\/p>\n\nrelated news<\/h6>\n<\/p>\n<\/section>\n
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Caputo noted that Argentina posted its first fiscal surplus in more than a century after running deficits in 124 of the past 130 years.<\/p>\n
\u201cWe reached fiscal equilibrium by cutting government spending by 15 percent,\u201d he said. \u201cFor 20 months we\u2019ve maintained a primary surplus. That is the foundation of stability.\u201d<\/p>\n
The economy minister warned that Argentina must avoid the \u201cpolitical volatility\u201d that has long deterred investors. Stability and policy continuity, he said, are essential to rebuild confidence and attract foreign direct investment.<\/p>\n
Caputo highlighted an unprecedented surge in foreign investment commitments, stating that Argentina had secured roughly US$100 billion in funding for new projects across various sectors, including energy, mining, and technology.\u00a0<\/p>\n
\u201cThe level of investor interest we\u2019re seeing is remarkable. We\u2019ve approved a new regime for large investments over US$200 million [Milei\u2019s \u2018RIGI\u2019 scheme], and already have around US$80 billion in announced or ongoing projects,\u201d he said.<\/p>\n
\u201cFor decades, Argentina relied on agriculture for its foreign currency,\u201d Caputo continued. \u201cWithin four years, the surplus from mining and energy will double that of agriculture. That\u2019s a structural transformation.\u201d<\/p>\n
Both officials framed Argentina\u2019s transformation as a long-term project to make it the \u201cthe freest and fastest-growing\u00bb country \u201cin the next 20 years,\u201d with policies geared towards private-sector investment, deregulation and international integration.<\/p>\n
Caputo closed by thanking US officials for their \u201cprofessionalism and commitment,\u201d calling the talks a turning point in bilateral ties.<\/p>\n
\u201cThe US is our most powerful ally,\u201d he said. \u201cThis is a historic opportunity \u2013 and we are not going to waste it.\u201d<\/p>\n \t\t\t\t\t\t\t\t<\/p>\nrelated news<\/h6>\n<\/p>\n<\/section>\n