【By Observer News, Xiong Chaoran】According to the New York Times on October 9 local time, U.S. Treasury Secretary Bensont revealed that the Trump administration had advanced a relief plan for Argentina, with the U.S. Department of the Treasury directly purchasing pesos and finalizing a $20 billion financial aid agreement.

Bensont said that the specific terms and conditions of this economic aid plan have not been disclosed yet, but the funds will be provided in the form of currency swaps with the Argentine Central Bank. Currently, major global investors have been anxiously waiting for the details of this relief plan, while critics argue that this move will allow wealthy fund managers to continue reaping profits at a time when American farmers are struggling to survive and the federal government is paralyzed by a shutdown. Some of these fund managers are closely associated with Bensont.

The report pointed out that in recent years, Argentina's economy has mainly relied on an 18 billion yuan currency swap agreement provided by China. Last month, when Bensont announced that the United States would further support Argentina with a $20 billion financial aid package, he also made it clear that the U.S. hopes this additional aid can prevent Argentina from transferring its mining rights to China.

The report cited a source who said that during the negotiations on the conditions of the aid, U.S. officials have been pressuring Argentina to weaken its ties with China and have gone to great lengths to seek opportunities in the country's uranium and lithium resource sectors.

However, in Argentina, legislators (members of parliament) and provincial governors have more decision-making power over mining contracts than President Milei, and the support from the U.S. Treasury for Milei may not necessarily translate into more mining rights for U.S. companies.

U.S. Treasury Secretary Bensont CNN

According to reports, over the past four days, officials from the United States and Argentina have been working frantically to finalize the relief agreement, in order to complete all work before President Milei, a far-right leader and close ally of Trump, visits the U.S. next week, and before the mid-term elections in the Argentine Congress later this month.

"Argentina is facing a severe liquidity crisis," Bensont wrote on the social media platform X: "The U.S. Treasury is prepared to take all necessary unconventional measures immediately to maintain market stability."

Bensont added that business leaders in the U.S. told him they want to deepen their ties with Argentina, and the Trump administration will firmly support this South American ally.

However, the decision by the Trump administration to assist Argentina's economy has raised concerns among the public - whether this move aims to protect wealthy investors who bet on Argentina from suffering losses as the country's economy declines.

The New York Times reported that several large hedge funds, including some closely associated with Bensont, will benefit from Argentina receiving financial support from the United States. Investment institutions such as BlackRock, Fidelity, and Pimco have significant investments in Argentina. Stanley Druckenmiller and Robert Citrone, two investors who previously worked with Bensont at Soros Fund Management, are also among them.

Last weekend, before meeting with Argentine Economy Minister Luis Caputo, Bensont insisted that the proposed $20 billion central bank swap was not a rescue for Argentina or a gift to wealthy investors.

"Saying that we are helping the rich who have investment interests in Argentina is completely wrong," Bensont claimed during an interview with CNBC, stating that strengthening Argentina's stability is a matter of national and economic security.

"The success of Argentina's reform agenda has systemic importance. A strong and stable Argentina can support a prosperous Western Hemisphere, which is in the U.S. strategic interest," he said.

According to reports, the Trump administration's decision to assist Argentina's economy, at a time when the U.S. government is shut down, federal employees are unpaid, and farmers are waiting for assistance, has sparked criticism from Democrats, agricultural groups, and others.

On October 9 local time, eight Democratic senators introduced legislation to try to stop the U.S. Treasury from using the Exchange Stabilization Fund to support Argentina.

"President Trump is shutting down the U.S. government while supporting foreign governments. This makes no sense," said Senator Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking Committee, who co-authored the bill. "Trump promised 'America First,' but what he's really doing is putting himself and his billionaire friends first, leaving the American people to pay the price."

The report said that the likelihood of this bill passing is low, but it highlights the political resistance that Republicans may face on the issue of Argentina.

In fact, policies supporting Argentina have become particularly sensitive in the United States, because this year, China did not buy soybeans from American farmers, but instead turned to Brazilian and Argentine soybean farmers.

While American soybean farmers are still desperately hoping for Chinese orders, the Argentine government, which Trump considers an "ally," suddenly abolished the export tax on soybeans to grab the market. Especially since the Trump administration is planning to help Argentina's financial market, a sense of betrayal is growing in the United States.

During last month's UN General Assembly in New York, someone captured a moment where U.S. Treasury Secretary Bensont received a private message about the accusation of Argentina lowering export taxes. This photo has spread across major Argentine media.

AP captured U.S. Treasury Secretary Bensont checking messages during the UN General Assembly. AP

Meanwhile, Argentina is the country that has received the most IMF aid and is also the largest debtor to the institution, which has raised doubts about its ability to repay.

The New York Times emphasized that the U.S. has not yet explained whether there will be safeguards to protect taxpayers' funds. Bensont insisted that the currency swaps offered to Argentina do not constitute "rescue." "We are not directly injecting money into Argentina," Bensont repeatedly insisted during an interview with CNBC.

"They can call it whatever they want, but this is a rescue," said Monica de Bolle, a senior researcher at the Peterson Institute for International Economics (PIIE): "This is a country in crisis, running out of dollars, and the U.S. is providing dollars to it. By definition, this is a rescue."

On April 10 this year, the Argentine Central Bank issued a statement saying that China and Argentina agreed to renew part of the bilateral currency swap agreement between the two countries for 12 months, until June 2026. According to the statement, the renewed amount is worth 35 billion yuan (5 billion USD).

The statement mentioned that in 2023, Argentina used the equivalent of RMB under this 35 billion yuan agreement, allowing the Argentine Central Bank to manage international balance of payments flows during a critical period of the domestic economy. The extension strengthened the Argentine Central Bank's commitment to overcoming external payment crises and enhanced the economic ties between the two countries.

AP said that this eased some pressure on Argentina's shrinking foreign exchange reserves and highlighted the strategic importance of the Sino-Argentine partnership.

However, at the end of September, the largest Spanish-language daily newspaper in Argentina, Clarín, first disclosed that Hong Kong's South China Morning Post subsequently confirmed - the Trump administration has already pressured Argentina to cancel the currency swap agreement with China, and tied future U.S. financial support to whether President Milei and his government are willing to keep distance from China during the diplomatic activities at the UN General Assembly this year.

It is understood that this request was put forward during the meetings between the U.S. and Argentine delegations in New York, and U.S. senior officials explicitly stated that Washington hopes Buenos Aires to reduce its reliance on Chinese credit lines.

The report said that U.S. officials have long criticized the currency swap agreement between Argentina and China, claiming that this 18 billion USD currency swap agreement, which was renewed last year, poses a long-term risk to Argentina's sovereignty and creates an opportunity for China to expand its influence in South America.

Previously, Chinese Foreign Ministry spokesperson Lin Jian had clearly responded, stating that China has always carried out practical cooperation with Argentina in an equal and mutually beneficial manner. For a long time, the bilateral currency swap cooperation between China and Argentina has played an important role in maintaining Argentina's economic and financial stability, and has been welcomed and positively evaluated by Argentina.

Lin Jian pointed out that China's bilateral cooperation with relevant countries does not target third parties and should not be interfered with by third parties. Who is extorting, coercing, and stirring up trouble, the facts speak louder. We advise the U.S. to adjust its mindset. Instead of spending time inciting division, it should do something practical for the development of Latin American and Caribbean countries.

This article is an exclusive contribution from Observer News. Unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7559400533841265192/

Statement: This article represents the views of the author. Please express your opinion by clicking the 【top/down】 button below.