Argentines Are Not Doing Great, They Are Dying: Trump
Washington grants a $20 billion swap to prevent the collapse of Milei’s far-right political project before the elections.
On Monday, Argentina’s Central Bank (BCRA) announced the signing of a “Currency Stabilization Agreement” with the U.S. Department of the Treasury for US$20 billion.
This announcement comes as U.S. President Donald Trump acknowledged the catastrophic economic situation Argentine President Javier Milei has placed his country in.
This impolite but very Trump-style admission came when the Republican leader responded to a question about whether the agreements reached benefited Argentine farmers at the expense of U.S. farmers.
“Argentina is fighting for its life. Nothing is benefiting Argentina. They are fighting for their lives. They have no money, they have nothing. They are fighting so hard to survive. If I can help them survive in a free world,” Trump said.
“I happen to like the president of Argentina. I think he’s trying to do the best he can. But don’t make it sound like they’re doing great — they’re dying. All right? They’re dying,” he stressed.
The agreement aims to “contribute to Argentina’s macroeconomic stability, with special emphasis on preserving price stability and promoting sustainable economic growth,” the BCRA said in a statement.
“It establishes the terms and conditions for bilateral currency swap operations between both parties,” Argentine authorities added, explaining that the measure will “expand the set of available monetary and exchange-rate policy instruments, including the strengthening of international reserve liquidity.”
“This agreement is part of a comprehensive strategy that reinforces Argentina’s monetary policy and strengthens the Central Bank’s capacity to respond to conditions that could lead to episodes of volatility in the foreign exchange and capital markets,” the BCRA added.
In previous days, Trump endorsed the currency swap line as a show of support for Argentine President Javier Milei, whose far-right party, Freedom Advances, could face a major defeat in the October 26 legislative elections.
Due to inconsistencies in the exchange-rate system and difficulties in accumulating reserves, Argentina has faced mounting currency pressures since midyear, as investors grow increasingly skeptical about how the South American country will manage its heavy debt repayments due in 2026.
In an attempt to rein in soaring inflation, Milei has depleted the country’s already scarce reserves through operations aimed at controlling the U.S. dollar’s price.
What Did Milei Give Up in Exchange for the Financial Bailout?
In September, Trump said he would grant Argentina a US$20 billion credit through his Exchange Stabilization Fund (ESF) and a currency swap arrangement.
Last week, however, the U.S. president conditioned his “generosity” on a victory for right-wing forces in the parliamentary elections, which would allow Milei to deepen the neoliberal policies demanded by international financial institutions.
At the same time, the U.S. Treasury had already begun acting to prevent a currency shock before the parliamentary elections. In an unprecedented move in Argentina’s foreign exchange market, it bought pesos—an undisclosed amount—and injected dollars. So far, it has intervened on three occasions, the latest on Oct. 16.
The swap agreement between the Milei administration and the U.S. Treasury Department has raised suspicions among both domestic and international analysts.
“Behind this major show of support lies an operation with enormous political and economic impact, whose most sensitive details remain opaque. The limited information disclosed raises more questions than answers,” commented Tiempo Argentino, an independent outlet run by its workers.
“The announcement lacks essential data such as disbursement tranches, applicable interest rates, specific repayment terms, and activation mechanisms. This lack of transparency is, at the very least, striking for an agreement of such magnitude, and it prevents a full analysis of the real costs and conditions Argentina may have accepted,” it added.
“The swap functions as an indispensable short-term financial lifeline but fails to address Argentina’s structural economic imbalances. The key question for investors remains unresolved: What will the exchange-rate regime and economic direction be after Oct. 26? The agreement with the U.S. Treasury provides oxygen but does not define the ship’s course, which remains at the mercy of the electoral storm and the absence of a credible plan beyond the current situation,” Tiempo Argentino said.
Opposition politicians, progressive academics, and alternative media outlets suspect that the lack of information about the currency swap stems from alleged concessions Milei may have made to Trump to secure U.S. access to Argentina’s natural resources and align the country with Washington’s geopolitical strategy.