FX.co ★ BCRA Signs $20 Billion Currency Swap Deal with US

Argentina's central bank (BCRA) has entered into a $20 billion currency swap agreement with the US Treasury Department, as disclosed in an announcement on Monday, just days before a significant midterm election. This agreement establishes the framework for bilateral currency swap operations between the United States and Argentina, although technical specifications were not provided. According to the central bank's statement, these operations aim to enhance the BCRA’s monetary and exchange rate policy tools, particularly by boosting the liquidity of its international reserves, as reported by Reuters. On the same day, the Argentine peso hit its lowest point, depreciating 1.7% to close at 1,475 per dollar. The BCRA highlighted that this agreement is part of a broader strategy to improve its capacity to manage foreign exchange and capital market fluctuations. While the US Treasury has not offered any details on the new swap line nor released an official statement, inquiries for further information remain unanswered.