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Argentina on Monday formalised a currency swap agreement with the United States for up to US$ 20 billion, aimed "at contributing to Argentina's economic stability," the South American country's central bank said. The announcement of a swap (currency exchange) with the government of President Donald Trump is taking place amid a run against the peso, and adds to other measures by the US Treasury. The deal is part of huge financial support from Trump, a strong backer of Argentine President Javier Milei who is under pressure ahead of mid-term elections on October 26. Trump has also promised his ally Milei a further US$ 20 billion from public and private funds to face the turbulences of the market, provided that he obtains a good election result. The US President justified his aid to Argentina: "They have no money (...) they're struggling to survive," he said on Sunday to reporters. The peso has been fluctuating wildly ahead of the vote, disrupting the savings and spending plans of Argentines who fear it could lose even more value in the coming weeks. Milei, once a global poster boy for budget-slashing libertarian politics, is heading into the polls diminished by his failure to stabilise the ailing peso, despite spending nearly all the Central Bank's dollar reserves to prop it up. US intervention has awakened criticism from the Argentine opposition. "The economy is managed by remote control from the United States," said former president Cristina Kirchner on Friday in a speech at a party rally. Inflation, which Milei had initially managed to stem after taking office in December 2023, has been rising again month-on-month. Hosting Milei at the White House last week, Trump threatened Argentine voters with withdrawing aid if his ally was defeated at the ballot box. "If he loses, we are not going to be generous with Argentina," Trump said. A good resulta is "one that allows me to get one third to defend the government's measures," said Milei on Thursday in reference to the votes he needs so that his presidential vetoes cannot be reverted. – TIMES/AFP
