The Treasury Department has extended a financial lifeline to Argentina in apparent hopes of heading off an emerging market financial crisis that could spread to U.S. shores.

In a move that Treasury Secretary Scott Bessent announced Thursday on social media site X, the U.S. is providing a $20 billion currency swap line with Argentina's central bank — essentially exchanging stable U.S. dollars with volatile pesos.

The move comes amid liquidity concerns in Argentina that threatened stability for the country as it faces key midterm elections.

Providing the swap line "marks a pivotal moment for Argentina's financial stability," Diego Celedon, head of equity strategy for the region at JPMorgan Chase , said in a client note. "The U.S. support acts as a circuit breaker, halting th

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