Fri, 09 Jan 2026

Fri, 09 Jan 2026 US calls Argentina peso bet a 'homerun deal'

The US Treasury Secretary said the US no longer held pesos in its exchange stabilisation fund.
US Treasury Secretary Scott Bessent claims his decision to invest in Argentina's currency has been successful, saying that the US has recovered its investment and made a profit. The US had purchased Argentine pesos last year after they were plummeting in value, with the goal of stabilizing the currency and boosting President Javier Milei's party ahead of national midterm elections. Critics accused Bessent of risking taxpayer money on an unstable economy. However, Bessent maintains that his decision was a "homerun deal" as it stabilized Argentina and generated tens of millions in profit for Americans. The US intervened by purchasing pesos and agreeing to extend a swap line with Argentina, allowing the country to exchange pesos for dollars. This helped to halt the decline of the currency, which further gained value after Milei's party won the mid-term elections. However, some experts remain concerned about the long-term sustainability of Argentina's economy, citing its reliance on short-term solutions rather than building up its own reserves.
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