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5h ago

U.S. Buys Argentine Pesos, Finalizes $20 Billion Swap to Steady Argentina’s Markets

The move followed four days of Washington talks aimed at easing an acute liquidity crunch.

A one thousand Argentine peso bill sits on top of several one hundred U.S. dollar bills in this illustration picture taken October 17, 2022. REUTERS/Agustin Marcarian/Illustration
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Overview

  • Treasury Secretary Scott Bessent said the department directly purchased pesos and completed a currency-swap framework with Argentina’s central bank.
  • Officials withheld operational details, including the size of the peso purchase and the mechanics of the $20 billion swap line.
  • Argentine assets rallied on the news as the peso firmed and dollar bonds climbed, though markets will be closed Friday in Argentina.
  • Bessent cited close coordination with the IMF and framed the support as liquidity assistance rather than a bailout tied to Argentina’s reform program.
  • The intervention drew criticism from U.S. lawmakers and farm groups, and attention now turns to a Trump–Milei meeting on Oct. 14 and further talks during IMF and World Bank meetings ahead of Argentina’s Oct. 26 elections.