CaliToday (27/10/2025): In a stunning move that is reshaping the playbook of international finance, U.S. Treasury Secretary Scott Bessent has executed a $2 billion currency trade with Argentina that netted the United States a 10% profit hundreds of millions of dollars in just a matter of days.
A new dispatch from the U.S. Treasury Department confirms that Bessent purchased over $2 billion in Argentine pesos under the framework of a $20 billion currency swap agreement announced on October 9, 2025.
The immediate, massive return was not a gamble, but a calculated bet on the "shock therapy" reforms of Argentina's libertarian President, Javier Milei. As Milei's administration successfully implemented a blitz of free-market policies, the long-battered Argentine peso surged dramatically against the dollar, turning the Treasury's position instantly profitable.
In a statement, Secretary Bessent drew a sharp line between this new strategy and the failed policies of the past, heralding it as "a new model of cooperation not a bailout, but an investment."
This approach marks a radical departure from the controversial and often ineffective IMF loan packages that have defined Argentina's history. Bessent emphasized that this swap program both provides critical financial stability for Argentina and, for the first time, generates a direct profit for the United States, "without risking U.S. taxpayer money."
In Buenos Aires, the news is being hailed as nothing short of a "financial miracle." Argentine economists are dumbfounded, noting that for the first time in modern history, their nation's economy is providing a return to the United States, rather than simply taking aid or incurring more debt.
This powerful psychological shift is massively strengthening public confidence in President Milei's radical, often painful, free-market reforms and his quest for monetary stability.
Analysts argue the implications are far more profound than just a single trade. This successful "investment" solidifies the burgeoning bilateral relationship between the Trump administration in Washington and the Milei government in Buenos Aires.
It is seen as the financial cornerstone of the new "Global Freedom Alliance" a burgeoning political and economic axis built on shared libertarian principles.
A White House advisor, quoted by Bloomberg, captured the sentiment in Washington:
"There has never been a U.S. financial program that both protects the taxpayer and helps another nation recover simultaneously. This is 'the art of the deal' in its truest Trumpian sense."