Last week, Treasury Secretary Scott Bessent unveiled a substantial $20 billion bailout package aimed at rescuing Argentina’s struggling economy. This taxpayer-funded initiative, which involves trading U.S. dollars for Argentine pesos, raises significant concerns about its benefits for everyday Americans. Argentina, long plagued by economic turmoil, is not a major trading partner for the U.S., and the implications of this deal for the average American citizen appear minimal at best.
However, the announcement of this bailout has proven to be incredibly lucrative for one American billionaire: hedge fund manager Rob Citrone. As a co-founder of Discovery Capital Management and a close associate of Bessent, Citrone stands to gain immensely from this financial maneuver. Notably, their professional relationship has not been widely reported in U.S. media, and Citrone has openly acknowledged his role in significantly boosting Bessent’s wealth.
Since right-wing populist Javier Milei took office as president of Argentina in December 2023, Citrone has aggressively invested in the country’s economy. He has acquired Argentine debt and stakes in several companies that are closely tied to the nation’s economic performance. With Argentina’s staggering debt burden and a chaotic economic history—punctuated by an inflation rate exceeding 200% in 2023—Citrone capitalized on the situation by purchasing Argentine bonds that offered nearly 20% interest rates. Despite managing $2.8 billion in assets, Citrone has been reticent to disclose the exact amount of his investments in Argentina.
Just days prior to Bessent’s announcement, Citrone made additional purchases of Argentine bonds, a move that has raised eyebrows given the timing. His investment strategy aligns with Milei’s aggressive economic program, which emphasizes deregulation and drastic cuts to government spending. Citrone has previously expressed confidence in Milei’s leadership, dismissing the risk of default as “minuscule,” despite Argentina’s history of debt defaults.
Initially, Citrone’s gambit appeared to pay off. After taking office, Milei implemented austerity measures that included significant layoffs, cuts to welfare programs, and a focus on achieving fiscal balance. These actions led to a reduction in inflation to around 40% and stimulated both economic growth and foreign investment, contributing to a remarkable 52% return for Discovery Capital in 2024.
However, the promising rebound quickly began to falter. The austerity measures ultimately stifled economic growth, resulting in rising unemployment, which surged to nearly 8%. As basic subsidies for transportation, medicine, and other essentials were slashed, millions of Argentines found it increasingly difficult to make ends meet. Milei’s declining popularity ignited fears that his party might face significant losses in the upcoming midterm elections, complicating his ability to implement his agenda. Consequently, panic ensued in the markets, leading to a sharp decline in the value of the peso and a wave of asset liquidations.
In a desperate bid to control inflation, Argentina’s central bank recently expended over $1 billion to stabilize the peso, but the country was rapidly depleting its foreign currency reserves—an ominous sign for Citrone’s investments. At this critical juncture, Bessent and the Trump administration intervened with the $20 billion economic package, providing much-needed support to stabilize the Argentine peso and serve as a political lifeline for Milei.
Citrone’s close ties to Bessent have spanned decades, with the two having collaborated during their tenure under investor George Soros. In a podcast appearance, Citrone humorously recalled how he convinced Bessent and Soros to make a significant bet on the U.S. dollar against the Japanese yen, which yielded substantial profits.
Latin American economic publication CE Noticias Financieras has noted Citrone’s friendship with Bessent, highlighting their shared history and Citrone’s influence in accessing Trump. Reports indicate that Citrone gifted Milei a case of premium red wine during a visit to Mar-A-Lago, marking their first meeting with the former president.
As Argentina’s economy began to show signs of distress, Citrone proactively advocated for an IMF agreement with the country, which ultimately led to Bessent’s role in securing a separate $20 billion currency stabilization package from the IMF. Following the IMF deal, Bessent made an unusual choice for his inaugural foreign trip by visiting Argentina, coinciding with Citrone’s arrival for meetings with Milei and other officials.
Bessent’s recent announcement has already had a positive impact on Argentine markets, boosting the value of bonds, stocks, and the peso. Citrone has expressed optimism, stating that U.S. support for Milei’s administration will yield strategic dividends.
However, questions linger about the long-term efficacy of the U.S. involvement. Propping up the peso beyond its market value may enable wealthy Argentines to cash out their assets and convert pesos into U.S. dollars, a phenomenon known as capital flight—one reason previous IMF interventions have failed to stabilize the economy.
Discovery Capital has yet to respond to inquiries regarding Citrone’s involvement in securing U.S. assistance for Argentina.
In a related development, the Conservative Political Action Conference (CPAC), a prominent right-wing political organization, has played a noteworthy role in the rescue package. Following Trump’s election, key CPAC officials established a lobbying firm, Tactic Global, which has been representing the Argentine government as a foreign agent since February 2025. This firm aims to facilitate communication between Argentine officials and their U.S. counterparts while providing strategic counsel.
The contract with Tactic Global stipulates a monthly payment of $10,000 from Argentina, positioning the firm as a vital intermediary in the political landscape. Recent reports indicate that CPAC’s involvement has extended beyond Argentina; the group is also working with other countries, including Kyrgyzstan and Vietnam.
As Bessent’s bailout package for Argentina unfolds, it raises critical questions about the intertwining of U.S. financial interests, political alliances, and the broader implications for the Argentine populace. While wealthy investors like Citrone stand to benefit, the long-term impacts on the average Argentine citizen remain uncertain.
