Velázquez Leads Congressional Demand for Clarity on Argentina Financial Intervention
washington, D.C. – Representative Nydia Velázquez has spearheaded a bipartisan letter signed by 22 members of Congress demanding answers from the Treasury Department regarding a recent financial intervention in Argentina utilizing the Exchange Stabilization Fund (ESF). The lawmakers express serious concerns that the Biden Governance is deploying funds to stabilize the Argentinian peso in a manner that prioritizes partisan objectives and possibly benefits Wall Street investors over the needs of American taxpayers and the Argentinian people.
The letter, addressed to the Treasury Department, criticizes the lack of transparency and established safeguards surrounding the intervention. Traditionally, ESF deployments have been accompanied by defined policy frameworks, repayment schedules, and congressional notifications to ensure accountability. The current action, though, appears to bypass these customary procedures, raising questions about its legality and fiscal responsibility.
“Significant American investment of this nature demands consultation and oversight from Congress,” the lawmakers wrote, pointing to ancient precedents like the 1995 intervention in Mexico which involved considerable collaboration with Congress and transparency into the ESF’s operations. They request the Treasury Department provide a complete accounting of the actions taken to bolster the Argentinian peso and stabilize its economy.
The lawmakers also highlight the potential for financial gain for major U.S. investment firms – including Fidelity, Pimco, and Discovery Capital Management – who hold significant exposure to Argentine bonds. This raises the specter that the ESF is being used to benefit these firms at the expense of U.S. taxpayers.
Furthermore, the letter expresses skepticism about Argentina’s ability to repay any loan, citing the government’s unsustainable practice of depleting its reserves to defend an overvalued currency. The lawmakers insist the Treasury Department explain what measures are in place to protect the ESF and U.S. taxpayers from potential losses.
“Treasury must explain what reforms or collateral are in place to protect the ESF and U.S.taxpayers from loss,” the letter concludes. The lawmakers are requesting a suspension of any further disbursement or implementation of the proposed swap or credit line to Argentina until these concerns are fully addressed.
The letter is signed by Representatives Alma Adams (NC), Greg Casar (D-T-TX), Joaquin Castro (T-TX), Judy Chu (D-CA), Suzan Clarke (D-T-TX), Veronica Escobar, Dwight evans (D-PA), Chuy Garcia (D-IL), Sylvia Garcia (D-TX), al Green (D-TX), Dina Titus (D-NV), Jonathan Jackson (D-IL), Sara Jacobs (D-CA), Ilhan Omar (D-MN), Scott Peters (D-CA), Delia Ramirez (D-IL), Jan Schakowsky (D-IL), Brad Sherman (D-CA), Mark Takano (D-CA), Paul Tonko (NY), and Juan Vargas (D-CA).
The full text of the letter is available here.
