Overview

• The U.S. Treasury disclosed direct purchases of Argentine pesos and finalized a $20 billion currency swap with the central bank after four days of talks in Washington.
• Treasury Secretary Scott Bessent said the effort is not a bailout, argued the ESF will not take losses, and described the peso as undervalued.
• Bessent emphasized geopolitical aims, saying President Javier Milei is committed to removing China’s presence from Argentina.
• Markets rallied following the announcement, with the peso retreating from the top of its trading band, New York–listed Argentine stocks jumping, and sovereign bonds rising about 8%.
• Senator Elizabeth Warren sought documents from the Managed Funds Association by October 22 and introduced a bill to restrict the Treasury’s ESF support for Argentina.