The U.S. Withdraws $900,000,000 from Its IMF Reserves to Assist Argentina 0 6

The United States has withdrawn approximately $900 million from its reserves at the International Monetary Fund (IMF) to help Argentina pay off its debt to the organization, for which the Latin American country lacked funds. This was reported by the Financial Times (FT).

The U.S. made the withdrawal after the Central Bank of Argentina and the U.S. Department of the Treasury signed a $20 billion currency swap agreement aimed at supporting the economy of the Latin American country. As noted by FT, the agreement itself has faced a wave of criticism from U.S. business circles. In particular, American agricultural producers have expressed dissatisfaction, as Argentina is their direct competitor in supplying a wide range of crops to international markets.

The newspaper indicates that the currency swap agreement between the U.S. and Argentina remains opaque, with specific mechanisms for providing financial assistance not disclosed. Analysts interviewed by FT believe that the transfer of funds through the IMF for debt repayment is part of this deal. "This (the signed agreement) is a large-scale and risky undertaking. At the moment, we know very little about it," said former U.S. Treasury official and chairman of the OMFIF think tank Mark Sobel.

In recent weeks, Argentina has faced rising country risk and the dollar's exchange rate. Earlier, Argentine President Javier Milei stated that the country's government is discussing possible forms of financial assistance with the U.S. to repay debts.

U.S. President Donald Trump has repeatedly praised Milei for his domestic and foreign policies and noted the ideological closeness of the libertarian-leaning Argentine leader. Trump has also referred to Milei as his "favorite president."