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49m ago

U.S. Treasury Buys Pesos, Finalizes $20 Billion Swap to Stabilize Argentina

U.S. officials cast the rapid support as market stabilization ahead of Argentina’s Oct. 26 vote.

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Scott Bessent aseguró que Javier Milei “está comprometido con sacar a China de Argentina”.
El presidente de Estados Unidos, Donald Trump. (Foto de Jim WATSON / AFP).
Luis Caputo, Santiago Bausili, José Luis Daza, Pablo Quirno y Baltasar Romero cerraron el jueves la negociación en Washington.

Overview

  • Treasury Secretary Scott Bessent confirmed direct peso purchases and a $20 billion currency-swap with Argentina’s central bank after four days of talks in Washington.
  • The U.S. intervened in Argentina’s official FX market via commercial banks, pulling the wholesale dollar lower and lifting local bond prices.
  • Bessent cited “acute illiquidity” and framed the move as countering Chinese influence, while Chief of Cabinet Guillermo Francos said the deal does not require cutting Argentina’s existing China swap.
  • Democratic senators introduced a No Argentina Bailout Act and U.S. farm groups criticized the support, as Bessent argued it is not a rescue and said the Exchange Stabilization Fund has never lost money.
  • The IMF’s Kristalina Georgieva praised the speed of the assistance, with key technical details such as ESF handling of pesos, swap duration, and conditions yet to be disclosed; President Javier Milei is set to meet President Donald Trump on Oct. 14.