By Micah Jonah
January 10, 2026
Argentina has fully repaid the United States for funds accessed under a currency swap framework that was extended last year to help stabilize the country’s economy, according to statements from U.S. and Argentine officials on Friday.
U.S. Treasury Secretary, Scott Bessent said the repayment reflects an improvement in Argentina’s financial position, noting that Washington’s Exchange Stabilization Fund no longer holds any Argentine pesos following the settlement. He added that the United States remains supportive of President Javier Milei’s administration.
Argentina’s central bank confirmed that the swap line was settled in December, roughly two months after it was announced. The facility allowed Buenos Aires to draw on U.S. dollars at a time of heightened economic pressure and currency volatility.
Local media reported that about $2.5 billion was used from a framework that allowed for up to $20 billion in support. A source familiar with the agreement said the swap line itself remains in place under its original terms, despite the repayment.
The deal was signed shortly before Argentina’s midterm elections, when concerns were mounting over inflation, foreign reserves and pressure on the peso. The swap line was designed to provide a temporary dollar buffer, helping authorities defend the currency, avoid a sharp devaluation ahead of the vote.
Officials said the funds were used in October to service debt obligations to the International Monetary Fund and to replenish foreign currency reserves that had been deployed to support the exchange rate during the election period.
President Milei, a libertarian leader aligned with U.S. President Donald Trump, emerged from the elections with strengthened legislative influence. U.S. officials had previously indicated that continued financial backing would depend in part on political stability and reform momentum in Argentina.
The agreement drew criticism in Washington, where some lawmakers and analysts described it as an indirect bailout and argued it could disadvantage U.S. agricultural exporters competing with Argentina in global markets, particularly in China.
Bessent has previously insisted the arrangement would not result in losses for U.S. taxpayers, framing it as a strategic use of American economic influence to support a friendly government.
Argentina’s Economy Minister Luis Caputo publicly thanked U.S. officials for what he described as swift support, accusing domestic political opponents of attempting to destabilize the government during a sensitive period marked by protests, policy disputes and corruption allegations ahead of the election.
