Overview

• The operation was executed Oct. 9–10 through Santander, Citi and JPMorgan, with market desks citing roughly $100 million in initial orders that drove a sharp rally in bonds and equities and a drop in financial‑dollar rates.
• The Treasury also announced a roughly $20 billion currency‑swap framework with Argentina’s central bank, with terms and operational conditions yet to be detailed and further clarity expected at the Oct. 14 Milei–Trump meeting.
• U.S. officials framed the step as a strategic move to support regional stability and counter growing Chinese influence, a notable departure given the Fed’s record that the U.S. has intervened only three times in FX markets since 1996.
• The move triggered political backlash in Washington, with Democrats including Senator Elizabeth Warren criticizing the aid and proposing limits on the Treasury’s Exchange Stabilization Fund, alongside scrutiny over potential conflicts reported by U.S. media.
• The support follows months of heavy Argentine defense of the peso—consultancies estimate about $10.5 billion deployed since April under a bands regime—buying time but leaving questions on reserves, the IMF program and post‑election policy choices.