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Argentina Activates U.S. Swap Tranche to Steady Peso as Markets Rally

Private estimates show net reserves near US$1.5 billion despite the operation, highlighting a narrow safety cushion.

Overview

  • U.S. Treasury secretary Scott Bessent confirmed a first activation of the bilateral swap and said the United States already booked a gain from the trade.
  • Market estimates put the activated amount near US$2.7 billion, with PPI calculating US$2.755 billion split between repaying pre‑election dollar sales and securing DEGs used for an IMF payment.
  • The official wholesale dollar remains close to the ceiling of the exchange band (ceiling near ARS 1,501, trading around ARS 1,413–1,421), limiting the central bank’s ability to buy foreign currency.
  • Economy minister Luis Caputo reaffirmed the bands regime, ruled out a free float, and said a program to accumulate reserves and repurchase sovereign debt will be presented within about 30 days.
  • Gross reserves ticked up US$95 million to roughly US$40.5 billion, while private estimates of net reserves fell to about US$1.48 billion as risk spreads eased below 600 and Argentine bonds and equities advanced.