Overview

• The U.S. Treasury, through Secretary Scott Bessent, said it is negotiating a $20 billion swap line with Argentina’s central bank and signaled readiness to buy Argentine sovereign bonds to curb volatility.
• At the Atlantic Council gala in New York, Bessent lauded Javier Milei’s reforms and presented him the Global Citizen Award, which Milei used to thank the United States and President Donald Trump for support.
• Reporting in Argentine media says Washington urged Milei to secure agreements with provincial governors and allies to demonstrate political stability ahead of the October 26 legislative elections.
• Additional reports describe U.S. expectations that Argentina unwind China-linked central bank swaps and pause certain energy projects, while opposition leaders demand any new external borrowing be disclosed and approved by Congress.
• Investor sentiment improved after the announcements, with country risk retreating toward pre-shock levels and local assets gaining as authorities also moved to bolster near-term foreign exchange inflows.