Finalizing a $20 billion financial support framework for Argentina during the government shutdown is an essential duty for the United States, according to Treasury Secretary Scott Bessent.
Bessent's assessment came in response to a letter from Sen. Elizabeth Warren, D-Mass., the ranking member of the Senate Banking Committee, who wrote to Bessent asking why the Treasury Department was pursuing the Argentina initiative while federal operations were limited.
"We have been forced to prioritize mission-critical efforts necessary to the discharge of the President's constitutional duties, including national security and global financial stability," Bessent wrote to Warren in a letter the senator shared with CNN.
The $20 billion framework, announced earlier this month, is a currency swap that allows Argentina's central bank to exchange pesos for U.S. dollars through the Treasury. The arrangement is intended to strengthen Argentina's financial system by providing liquidity and market stability.
The Argentine peso has weakened sharply since President Javier Milei, an ally of President Donald Trump, experienced major setbacks in local elections, raising doubts about his party's strength in upcoming midterm contests.
Trump said last week that future U.S. economic assistance would depend on the outcome of those elections.
Concerns remain over whether the Treasury's action has helped stabilize Argentina's currency. Although the peso briefly rose following Bessent's announcement, it fell earlier this week.
Bessent did not directly address Warren's questions about private-sector involvement in his reply, and the Treasury Department did not respond to CNN's inquiry.
The secretary confirmed the Trump administration plan in a post on Friday, writing, "The United States stands with Argentina. Yesterday, Treasury bought pesos in the "Blue Chip Swap" and spot markets. Treasury remains in close communication with Argentina's economic team as they work to Make Argentina Great Again."
Bessent added that the U.S. could move as quickly as needed to support its ally. "Treasury is monitoring all markets, and we have the capacity to act with flexibility and with force to stabilize Argentina."
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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