The Indicator from Planet Money Where the US got $20B to bail out Argentina
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Nov 13, 2025 
This session features Monica DeBull, a Senior Fellow at the Peterson Institute for International Economics, known for her insights on international macroeconomics. They delve into the U.S.'s $20 billion bailout for Argentina through the Exchange Stabilization Fund. Monica discusses the fund's historical significance and modern implications, contrasting Argentina's situation with past bailouts like Mexico's in 1995. Key topics include political motivations, the risks of recurring crises, and unique plans for additional private funding.
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Origins And Evolving Role Of The ESF
- The Exchange Stabilization Fund (ESF) was created in 1934 to let the Treasury buy and sell currencies and gold to stabilize the dollar.
- Today the ESF holds multiple currencies and IMF special drawing rights rather than actively stabilizing the dollar.
Why Dollar Stabilization Waned
- The need to stabilize the dollar faded as the U.S. dollar became the global reserve currency and its value stabilized.
- The ESF's mandate to stabilize the dollar was removed in the 1970s and its uses broadened.
What The ESF Actually Holds
- The ESF holds IMF special drawing rights and other foreign assets, earning income from interest and investments.
- As of September the ESF had a net balance of $43.5 billion, making a $20 billion loan a large share.