The U.S. is providing a $20 billion currency swap line with Argentina’s central bank — essentially exchanging stable U.S. dollars with volatile pesos.
While Argentina poses little systemic risk, it can still matter in terms of flight risk for capital along with volatility in debt and commodity markets.
In addition to economic and market matters, the U.S. has a significant political stake in what’s happening in Argentina
We shouldn’t be bailing out countries
It depends on the reason. Marshall Plan, good idea. Milei, total scam.
Gotta put your own oxygen mask on before saving others
It doesn’t seem to be helping the Argentine Peso recover it’s value if that’s any consolation.