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Caputo in Washington: Is the bailout enough? What was Caputo negotiating? The implementation of the currency swap that Donald Trump plans to announce on October 14th when President Javier Milei visits him again. Reports indicate that Caputo is interested in the Treasury's commitment to buy Argentine bonds to improve the exchange rate and, consequently, lower the country risk. Another alternative put forward by IMF Managing Director Kristalina Georgieva is the use of the United States' Special Drawing Rights (SDRs) for Argentina. What are SDRs? They constitute an international reserve asset. They are not strictly a currency, but their value is based on a basket of five currencies: the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the pound sterling. By using US SDRs, the Central Bank of Argentina could strengthen its reserves to some extent . This entire rescue operation has a very clear purpose : to dispel doubts about Argentina's ability to pay its dollar-denominated debt , particularly that held by the wolves of Wall Street . In other words, Bessent, Georgieva, and Caputo are seeking to rescue Yankee financial capital. For this same reason, the markets are waiting for the "show me the money" to materialize, in relation to Trump and Bessent releasing dollars before the elections. But, let's remember, it was Bessent who said this week that they were supporting Argentina, but hours later he clarified that "We are not putting money into Argentina, we are giving it a swap line ," under pressure from criticism within his own country. It's common knowledge that Trump isn't acting for humanitarian reasons , but rather demands that Milei signal his geopolitical interests in the United States . But he's also pressuring Milei to negotiate with Mauricio Macri and the governors to broaden the government's support base. Not only that. Washington wants the Argentine peso devalued. Now, it is necessary to inspect structural information. According to data from the Ministry of Economy, in December 2023, the gross debt of the National Government (in pesos and dollars) stood at US$371 billion (lower than in November 2023 due to the devaluation). In August 2025, it reached US$454 billion, an increase of almost US$84 billion since Milei took office. At the same time, since the agreement with the IMF was signed, the Central Bank's foreign exchange balance recorded outflows of US$22 billion from the purchase of banknotes in the period from April to August 2025. This amount is slightly reduced when netted against income from banknote sales. Although the currency controls were not lifted for businesses, it is known that many entrepreneurs purchase banknotes as individuals (not legal entities). These dollars mostly end up in tax havens. This week, INDEC published data on the balance of payments for the second quarter (April-June) : Argentines' financial assets abroad grew by nearly US$18 billion in just one quarter, reaching US$470 billion. The Central Bank's data comprise an accounting record of transactions, while the INDEC's data correspond to a statistical methodology, but they give an idea of how the dollars lost by the Central Bank leave the local economic circuit and possibly end up in other geographies . As you can see, the plot of Milei and Trump's novel has profound implications. And it exposes a disturbing certainty: Argentina faces another historic pillage , with the debt that finances capital flight and then remains a mortgage for all Argentines . https://www.laizquierdadiario.com/Caputo-en-Washington-alcanza-el-rescate Back |
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