{"id":349057,"date":"2025-10-13T18:09:53","date_gmt":"2025-10-13T23:09:53","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2025\/10\/13\/how-much-will-we-lose-lending-to-argentina\/"},"modified":"2025-10-13T18:09:53","modified_gmt":"2025-10-13T23:09:53","slug":"how-much-will-we-lose-lending-to-argentina","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2025\/10\/13\/how-much-will-we-lose-lending-to-argentina\/","title":{"rendered":"How Much Will We Lose Lending to Argentina?"},"content":{"rendered":"

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The $20 billion swap announced by Bessent (not on US Treasury website as far as I can tell) is funded out of the Exchange Stabilization Fund. As far as I can tell, there\u2019s no conditionality. This transaction is qualitatively different from Fed swap lines with for instand ECB and BoE wherein the Fed had access to their currencies.<\/p>\n

Hence, the swap is essentially a loan from US Treasury (i.e., you and me, American taxpaers). I want to know what\u2019s the collateral. Hopefully, we\u2019re not relying on the reliability of Argentina to stabilized its currency\u2026<\/p>\n

So far, the Treasury intervened on Friday<\/a>.\u00a0 It\u2019s not clear that worked to stabilize the currency.<\/p>\n

Here\u2019s the Argentine peso\u2019s value over the last month:<\/p>\n

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