The U.S. government announced on Friday that Argentina had returned to the U.S. Treasury the funds corresponding to the currency swap signed on October 20, 2025, just days before the midterm elections in the South American country. The agreement had involved a currency swap of approximately .7 billion, intended to bolster international reserves and curb exchange-rate volatility.
The return was confirmed by U.S. Treasury Secretary Scott Bessent, who highlighted the speed with which the refund was processed.
«I am pleased to announce that, as a reflection of its strengthened financial position, Argentina has promptly and fully repaid its limited swap drawdown with the United States», the official said.
Total closure of the swap between Argentina and the United States
Bessent detailed that the U.S. Exchange Stabilization Fund (ESF) «currently holds no pesos», confirming the complete closure of the bilateral operation and the full cancelation of the financial support mechanism.
The currency swap between Argentina and the United States was designed as a support tool in a context of high economic uncertainty, with pressures on the exchange rate and the reserves of the Central Bank of the Republic of Argentina (BCRA).
Read more: United States cancels second wave of attacks in Venezuela after cooperation and prisoner release
What does early termination of the swap entail?
The early repayment of the US.7 billion is interpreted by analysts as a sign of improvement in Argentina’s external liquidity, although experts warn that it will be crucial to know the exact terms of the repayment and its real impact on the central bank’s net reserves.
The payment also comes amid a financial realignment following the elections, which reinforces markets’ interest in the evolution of economic policy and the bilateral relationship with the United States.
Impact on reserves and the foreign exchange market
While the swap’s closure eliminates a temporary source of funding, the transaction reduces contingent liabilities and could help improve perceptions of the country’s financial stability, especially among international investors and multilateral organizations.
The upcoming official reports will allow us to assess whether this repayment translates into greater strength in international reserves or whether it is a one-off adjustment within the Argentine government’s economic strategy.
