Argentine right-wing President Milley, a close ally of President Trump, faces crucial midterm elections this month.

U.S. President Donald Trump’s administration bought Argentine pesos and finalized a $20 billion currency swap framework with Argentina’s central bank in an effort to shore up the country’s shaky finances.

Finance Minister Scott Bessant X announces transaction “Argentina faces a moment of severe illiquidity. The international community, including the International Monetary Fund, is unanimous in supporting Argentina and its prudent fiscal strategy, but only the United States can act quickly. And we will act,” he said on Thursday.

Bescente’s comments came after four days of meetings with Argentine Foreign Minister Luis Caputo, who said His “deepest gratitude” revealed to Bessent on X after the deal was announced.

The support comes as Argentina’s right-wing President Javier Milei, a close ally of Trump’s, has been battling financial market turmoil.

Argentina bond prices The peso plunged sharply in late September as investors watched the country’s central bank quickly burn through its meager foreign exchange reserves to defend the peso’s decline.

The currency fell more than 6% in early October, its biggest one-day drop since Sept. 8, forcing the government to sell more dollars on the spot market to prop up its exchange rate.

While the Trump administration insists the program is not a bailout, U.S. farmers and Democratic lawmakers have criticized the deal as being designed to help a country that benefits from soybean sales to China at the expense of American farmers.

Thursday’s announcement came after a group of Democratic senators introduced the No-Bailout Argentina Act, which would prevent the Treasury Department from using its Exchange Stabilization Fund to aid Argentina.

“It’s incomprehensible that President Trump supports a foreign government while shutting down our own government,” Democratic Senator Elizabeth Warren said in a statement. “Trump promised ‘America First,’ but he put himself and his fellow billionaires first and held Americans to this bill.”

Millay was once a maverick outsider who won a surprise election in 2023 on her promise to curb runaway inflation and promote stability. Liberal ally Trump has previously described Milley as his “favorite president.”

U.S. financial support”bought some time for millai. “It’s a lifeline, but it’s not a panacea,” Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, told Al Jazeera in early October. In the short term, he added, “inflation risks are on the rise… If Milai underperforms in October, negative political and financial noise will return”.

“It’s going to be a tough situation for Mire,” Abadia said.

Argentina is scheduled to hold mid-term elections on October 26.