Argentina officially announces multimillion-dollar currency deal with US

Argentina officially announced Monday a $20 billion currency deal with the United States as part of an exchange rate stabilization agreement days ahead of a crucial legislative election for President Javier Milei.

The announcement of a swap with the U.S. government comes amid a run against the Argentine peso, and adds to other U.S. Treasury measures in support of Milei before the Oct. 26 election.

"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," Argentina's central bank said in a statement.

Trump also further promised his ally Milei another $20 billion in public and private funds to deal with market turbulence provided he gets a good election result.

The U.S. president justified his aid to Argentina and argued before reporters that Argentines "have no money" and are struggling to survive.

Last week, the U.S. Treasury intervened in the Argentine exchange market and bought pesos in the "'blue chip swap' and in the spot market," confirmed Treasury Secretary Scott Bessent.

A "blue chip swap" allows an investor to buy a foreign asset, usually depreciated, and then sell it in a local market at a higher price.