Argentine Central Bank seeks to contain peso devaluation and reinforce economic stability before elections
The Central Bank of Argentina formalized a US$20 billion (equivalent to R$108.7 billion) financing line with the United States. The agreement, established through a currency swap mechanism (currency exchange), was this Monday (October 20, 2025), in a context of devaluation of the Argentine peso.
The announcement takes place 6 days before scheduled for October 26, considered decisive for the government of President Javier Milei (La Libertad Avanza, right). The operation is part of a broader economic stabilization strategy for the South American country.
“The objective of this agreement is to contribute to Argentina’s macroeconomic stability, with special emphasis on preserving price stability and promoting sustainable economic growth“, said the Argentine Central Bank in .
US President Donald Trump (Republican Party) had on Tuesday (14.Oct) financial aid to the South American country for the victory of Milei’s political group in the elections: “If he [Milei] lose, we will not be generous with Argentina. The poll numbers are good and they should improve after today”.
The financial agreement was established in a context of exchange rate instability, with the Argentine peso facing a process of on the market. The Argentine BC did not disclose details about the interest rates applicable to the agreement or the deadline for returning the amounts.
A currency swap is a type of agreement between 2 countries or central banks to exchange currencies with each other for a set period of time. In practice, the Central Bank of Argentina receives dollars from the United States government and delivers Argentine pesos in return, with the commitment to reverse the operation in the future (that is, return the dollars and retain the pesos again).
