9 months ago
US Treasury Says It Profited From Argentina Currency Swap
Imagine the US government gave some money to Argentina's central bank to help their money stay steady, kind of like giving a friend a little help when they're short on cash.
This happened before an important election in Argentina.
The US Treasury Secretary said that not only did this help Argentina, but the US actually made money from the deal.
He thinks helping countries like Argentina is a good chance for the US to make allies and be good for Americans.
He also mentioned that other countries in Latin America are having elections soon, and the US sees opportunities there too.
He said this is different from a bailout because the US government made a profit.
US Treasury Secretary Scott Bessent stated the U.S. government profited from a $20 billion currency swap line provided to Argentina.
The support was given to the Argentine central bank ahead of the country's midterm election.
Bessent referred to the support as being provided through the Treasury’s Exchange Stabilization Fund, not a bailout.
He emphasized that making a profit from stabilizing Argentina's economy is a good deal for the American people.
Bessent sees a "generational opportunity" to create allies in Latin America, citing upcoming elections in Chile and Colombia.
- Who
- US Treasury Secretary Scott Bessent
- What
- Stated the US government profited from a currency swap line provided to Argentina
- Where
- Argentina
- When
- Ahead of Argentina's midterm election
- Why
- To stabilize the government during an election and create an ally in Latin America
Key facts
- Treasury Secretary
- Scott Bessent
- Support Amount
- $20 billion
- Fund Used
- Exchange Stabilization Fund
- Argentine President
- Javier Milei
Quotes
Scott Bessent
Treasury Secretary
“We used our financial balance sheet to stabilize the government, one of our great allies in Latin America, during an election.”
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“By stabilizing the economy there (in Argentina) and making a profit, then that is a very good deal for the American people.”
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