Trump Pledges $40 Billion to Stabilize Argentine Peso

The United States government has pledged a total of $40 billion in financial assistance to stabilize the Argentine economy and prevent a devaluation of the peso. This support includes a $20 billion facility announced by Treasury Secretary Scott Bessent to counter market volatility ahead of Argentina's October 26 legislative elections. Bessent stated that "all options" are on the table to prevent a financial crisis and instill investor confidence, echoing the U.S. bailout of Mexico in 1995.

President Donald Trump tied further financial generosity to the electoral success of President Javier Milei, stating, "If he loses, we are not going to be generous with Argentina." The funding is intended to help Milei maintain parliamentary support for his labor, tax, and pension reforms as he faces dwindling foreign reserves and waning popularity.

In response to mounting pressure, the Central Bank of Argentina sold $45.5 million on the foreign exchange market on October 22 to halt a run on the currency. The peso had lost 8.48 percent of its value against the U.S. dollar since September 8, following electoral defeats for Milei's party in Buenos Aires province. The economic instability coincides with rising inflation and a slowdown in manufacturing and consumption.