Treasury Secretary Scott Bessent announced on Thursday (the 9th) that the United States has purchased Argentine pesos and finalized a $20 billion economic support program to bolster the South American nation's struggling finances.

Secretary Bessent further stated that following four days of meetings in Washington, D.C. with Argentine Economy Minister Luis Caputo, the Treasury Department has finalized a $20 billion (approximately 28 trillion KRW) currency swap agreement with the Central Bank of Argentina.

Argentine President Javier Milei, a staunch right-leaning ally of President Donald Trump, quickly expressed his gratitude to the American leader for his "vision and strong leadership" immediately following the announcement.

President Milei has been grappling with market turmoil following a defeat in the Buenos Aires provincial election, which is viewed as a bellwether for the midterm elections scheduled for later this month.

On Thursday (the 9th), Secretary Bessent stated on X that "Argentina is facing a severe liquidity crisis," adding that Washington is well-positioned to respond swiftly.

He noted, "To this end, we directly purchased Argentine pesos today," and added, "We have also finalized a $20 billion currency swap agreement with the Central Bank of Argentina."

Bessent declared that the Treasury Department is "prepared to take all necessary extraordinary measures immediately to ensure market stability."

His remarks on X came after four days of discussions in Washington with Argentine Economy Minister Luis Caputo.

In an interview with Fox News, Secretary Bessent stated that President Milei is working to break a 100-year cycle of failure, adding, "He is a strong ally of the United States, and I look forward to the President's visit to the White House next Tuesday."

He emphasized, "We do not want to see another failure in Latin America or another nation fall under Chinese influence," asserting that "stabilizing Argentina is part of the 'America First' policy."

He explained, "The success of Argentina’s reform agenda is of systemic importance, and a strong, stable Argentina that drives a prosperous Western Hemisphere aligns with the strategic interests of the United States."

Bessent added that President Trump and Argentine President Milei are scheduled to meet next week, just weeks before Argentina's October 26th midterm elections.

The Treasury Secretary also mentioned plans to meet with Minister Caputo again during the IMF and World Bank Annual Meetings in Washington on Tuesday, October 14th.

IMF Managing Director Kristalina Georgieva praised the U.S. action in an X post, stating that the fund, which approved a $20 billion loan for Buenos Aires in April, "fully supports" Argentina's "strong economic program."

Earlier this month, Bessent said in an interview with CNBC that several South American governments have "shifted from the far-left to the center-right."

He added, "When we didn't support them, they swung sharply to the left."

At the time, he referred to Argentina as a "beacon," noting that other countries might follow its lead.

In a statement sent to Trump and Bessent via X on Thursday, President Milei declared, "As closest allies, we will work together to build a hemisphere of economic freedom and prosperity."

US NNP = Representative Sung Ku Hong / Special Correspondent for NNP info@newsandpost.com