Overview

• Washington executed initial direct dollar sales through Citi, Santander and J.P. Morgan, driving the wholesale rate down near 1,420 pesos and lifting Argentine bonds as risk spreads narrowed.
• Treasury’s package includes a $20 billion currency swap with the central bank, with further details expected next week as Javier Milei meets Donald Trump at the White House, and officials signal more sales could follow if pressures return.
• IMF chief Kristalina Georgieva praised the speed and scale of the U.S. move, while analysts say the measures ease near‑term liquidity stress without resolving Argentina’s underlying external and fiscal gaps.
• Scott Bessent framed the support in geopolitical terms tied to reducing Chinese influence, a stance that drew pushback from Argentine officials and criticism from U.S. economists and Democratic lawmakers over potential favoritism and capital flight.
• Key operational questions remain unanswered, including ESF accounting for pesos, legal terms and exchange‑rate risk, as food producers’ recent price hikes—some up to about 10%—and consultancy data point to higher short‑term inflation.