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2h ago

U.S. Backs Argentina With Swap-Line Talks as Bessent Rules Out Direct Cash

Markets test Washington's resolve following an emphasis on a swap line over direct funding.

U.S. Treasury Secretary Scott Bessent attends the 80th United Nations General Assembly, at the U.N. headquarters in New York City, U.S., September 23, 2025. REUTERS/Jeenah Moon/File Photo
U.S. President Donald Trump and Argentina's President Javier Milei react as they meet during the 80th United Nations General Assembly, in New York City, New York, U.S., September 23, 2025. REUTERS/Al Drago/File Photo
U.S. Treasury Secretary Scott Bessent attends a meeting between U.S. President Donald Trump and Argentina's President Javier Milei (both not pictured) during the 80th United Nations General Assembly, in New York City, New York, U.S., September 23, 2025. REUTERS/Al Drago/File Photo
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Overview

  • U.S. Treasury Secretary Scott Bessent praised Argentina as a regional beacon and said Treasury stands ready to support President Javier Milei's program, with Caputo's team heading to Washington for talks.
  • He stressed that the U.S. proposes a currency swap line rather than putting money into Argentina, with negotiations previously described around $20 billion.
  • Argentina’s dollar bonds rallied on his support pledge then turned negative after his clarification, while the peso steadied Thursday after sharp earlier losses.
  • A U.S. government shutdown and objections from some Republicans, including Senator Chuck Grassley, add uncertainty to the scope and timing of any U.S. backstop.
  • Buenos Aires recently suspended grain export taxes to raise dollars, generating about $7 billion in sales, and Trump is set to meet Milei in two weeks ahead of the Oct. 26 midterm elections.