EuroWire, BUENOS AIRES: Argentina has repaid the United States $2.5 billion that it drew under a short term currency swap credit line from the U.S. Treasury, completing the repayment by the end of December 2025, according to statements from U.S. and Argentine authorities. The repayment closes out Argentina’s use of the facility that was opened in October 2025 as market pressures intensified and foreign currency reserves remained strained.
The U.S. Treasury said the transaction was conducted through the Exchange Stabilization Fund, a long standing mechanism used for financial stability operations. Treasury officials said the fund no longer holds Argentine pesos associated with the operation after the repayment was completed. The U.S. side also reported that the sequence of swap and repayment generated a small profit for U.S. taxpayers.
Argentina’s central bank confirmed that the $2.5 billion had been repaid, marking a rare instance in recent years in which the country has fully returned emergency dollar liquidity on a compressed timeline. The repayment drew attention because Argentina’s economy has been burdened by high inflation, limited access to international capital markets, and recurring shortages of hard currency needed to support trade and meet external payment obligations.
The currency swap arrangement was announced in October 2025 with an overall size of up to $20 billion, structured to allow Argentina to obtain U.S. dollars in exchange for pesos for a defined period before reversing the exchange. Authorities said Argentina used $2.5 billion of the available amount, and later reversed the transaction through repayment, returning dollars to the U.S. Treasury and ending the fund’s exposure to pesos linked to that draw.
How the swap facility works and why it drew attention
In practical terms, the swap provided Argentina’s monetary authorities access to dollar liquidity without issuing new long term debt in public markets. For countries facing tight dollar availability, such arrangements can temporarily bolster reserves and help manage settlement needs in financial markets. U.S. officials described the facility as a credit line that could be drawn and repaid under agreed conditions, while emphasizing the taxpayer protections embedded in the Exchange Stabilization Fund’s framework.
U.S. Treasury Secretary Scott Bessent publicly announced the repayment in early January, describing it as a full and rapid return of the amount Argentina had drawn. The Treasury’s message highlighted that the operation had been closed and that the fund no longer held pesos from the transaction. Argentine officials, in their own confirmation, said the repayment aligned with the terms of the swap draw, ending Argentina’s outstanding balance tied to that specific use of the line.
The repayment comes as President Javier Milei’s administration continues to pursue sharp fiscal and monetary adjustments amid a volatile economic environment. Argentina’s financial system has faced persistent pressure from inflation and a history of currency instability, conditions that complicate reserve management and increase sensitivity to swings in demand for dollars. Authorities have repeatedly pointed to the importance of rebuilding reserves and restoring confidence in domestic financial conditions.
What officials have confirmed about timing and amounts
Both governments have focused their public descriptions on the same core facts: a $2.5 billion draw under a larger $20 billion facility, followed by a full repayment completed by late December 2025 and announced publicly in January 2026. The U.S. Treasury has also said the Exchange Stabilization Fund recorded a modest gain on the operation. Beyond those points, neither side has provided detailed, itemized disclosures in public statements about the timing of cash flows within the period or the internal accounting treatment in Argentina.
The repayment has been watched by investors and policymakers as an indicator of near term liquidity management between Buenos Aires and Washington. While Argentina’s longer run economic challenges remain substantial, the repayment ends the country’s use of this particular draw and eliminates the U.S. fund’s remaining position linked to it. Officials on both sides framed the result in procedural terms, underscoring that the operation was executed and unwound as specified under the arrangement.