Overview
- Argentina’s central bank announced a currency‑stabilization swap of up to US$20 billion with the U.S. Treasury, which Secretary Scott Bessent publicly confirmed on Tuesday.
- Despite the announcement and reported U.S. sales of roughly US$340–400 million, the official rate traded within about 1% of the upper band as the Banco Nación price touched ARS 1,505 and parallel and financial rates topped ARS 1,500.
- Futures contracts imply an official rate near ARS 1,650 by December, reflecting expectations of devaluation and doubts that the banded regime will persist after the October 26 elections.
- The government said it began talks to repurchase sovereign bonds in the secondary market with JP Morgan as advisor, and dollar bonds pared losses late on the news.
- Analysts note the U.S. swap is a contingent facility that does not add to gross reserves unless activated, leaving pre‑election dollarization pressures largely unchanged.