U.S. Treasury Secretary Scott Bessent has defended Washington’s intervention in Argentina’s currency market, saying the high-risk move delivered both political and financial returns for the United States.
Bessent said the U.S. has now fully exited its position in the Argentine peso after recovering its financial support, confirming that no pesos remain in the Treasury’s exchange stabilization fund. The intervention, launched last year during a period of sharp currency volatility, was aimed at preventing further market disruption while backing Argentina’s reform-minded government.
The U.S. stepped in as the peso was under heavy pressure ahead of Argentina’s midterm elections, with investors nervous about potential political instability. At the time, Washington also extended a currency swap facility, allowing Argentina to exchange pesos for dollars in an effort to restore confidence and stabilize markets.
While the move drew criticism from U.S. Democrats—who accused the Treasury of putting taxpayer funds at risk in a country with a long history of financial crises—Bessent said the outcome justified the decision. In a public statement, he described the operation as a win that strengthened a strategic ally while generating profits for American taxpayers.
Argentina’s central bank confirmed that the swap facility was settled in December, noting that only a fraction of the available amount was ultimately used. Additional support tied to reserves held at the International Monetary Fund was also disclosed in government filings.
The peso stabilized following the intervention and gained further ground after President Javier Milei’s party secured a decisive victory in the midterm elections, although the currency has softened somewhat in recent months.
Analysts say recovering the funds marks a clear short-term success for Washington, but caution that deeper economic risks remain for Argentina. Some experts warn the country has relied heavily on external support and depleted reserves, raising questions about its ability to sustain stability without further assistance.
Despite those concerns, the Treasury maintains that the episode demonstrates how targeted intervention can deliver strategic and financial benefits when executed carefully.