The U.S. Treasury has announced a $20 billion currency swap agreement with Argentina's central bank to stabilize the peso and mitigate economic volatility. The deal, revealed by Treasury Secretary Scott Bessent, involves direct peso purchases and a credit line through the Foreign Exchange Stabilization Fund. This initiative aims to prevent excessive exchange rate fluctuations and bolster investor confidence. The agreement was reached after four days of negotiations with Argentine Economy Minister Luis Caputo, who highlighted the Treasury's readiness to take 'extraordinary measures' to stabilize markets. The move is in line with President Trump's support for Argentina's economic reforms and has been praised by President Javier Milei. Despite criticism from U.S. farmers and Democratic lawmakers regarding potential impacts on American agricultural interests, the Treasury emphasized that the measures are a liquidity framework rather than a traditional bailout. The announcement led to positive market reactions, with Argentine bonds rising and the peso strengthening against the dollar.