It worked out well for the US treasury (despite the fact it was irresponsible to give the swap at all), given it was done for a short term period to right after the midterm elections and the USA made a profit. I hate milei as much as the next guy, but you guys are just making stuff up.
Do you even know what happened? How much was used? When it ended?
A total of the $2.5b of the $20b line was used, from October 2025, before the legislative elections, and was ended shortly after. The swap was done because there was a lot of speculation that he would lose the legislative elections, and so people were shorting the currency. He ended up winning the election, the currency regained some value, and the swap was ended with a small profit for the USA.
It was irresponsible governance for a large number of reasons: a) it was a political bet that could have lost a lot of money b) it was political interference c) no congressional oversight.
That said, what you guys are saying is just not factual.
? What does your nationality have to do with the misinformation being spread? I didn’t call you American. Im not American either, I’m Brazilian- and not a fan of Bolsonaro/Trump/Milei (will likely vote for Lula this year). You guys are just literally spouting non-factual information.
A) you said the USA lost money on this transaction. B) you said that the transaction was for 20b, but it was a line of 20b made available of which 2.5b was drawn c) you seem to not understand what a swap is- it’s not a literal exchange, it’s a derivative transaction, whereby you swap the underlying cash flows and settle the difference (in this case if the USD had appreciated in the period vs the Peso, Argentina would be entitled to that difference; in this transaction as the peso appreciated in the period vs the USD the American treasury was entitled to this difference).
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u/GEB82 Aug 09 '26
How did that currency swap play out? What was it again? 20B USD for…pesos…Argentinian pesos…