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40m ago

U.S. Buys Pesos and Outlines $40 Billion Backstop as Argentina’s FX Swings Continue

Volatility persists before the October 26 elections, with a weak debt rollover and tight liquidity pressuring the currency.

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Lingotes de oro.
Pablo Quirno, secretario de Finanzas
En la apertura, el Dow Jones subía 0,56%, el S&P 500 ascendía 0,69% y el Nasdaq progresaba 0,82%. Foto: EFE.

Overview

  • U.S. Treasury Secretary Scott Bessent confirmed a fresh peso purchase in the local market and said Washington is working on support totaling about $40 billion, combining a $20 billion swap with an additional line near $20 billion.
  • Following the intervention signals, the official dollar closed at ARS 1,405 at Banco Nación and ARS 1,380 in the wholesale market, while the blue ended at ARS 1,450 and financial dollars eased.
  • Argentine assets staged a partial rebound as ADRs rose up to roughly 11% and sovereign dollar bonds gained as much as 4%, with country risk remaining just over 1,000 basis points.
  • The Treasury rolled over only about 45.7% of roughly ARS 3.86 trillion in private maturities, releasing more than ARS 2 trillion in pesos and keeping short-term funding conditions strained.
  • Markets were jolted Tuesday after President Donald Trump tied U.S. assistance to election outcomes, prompting clarifications from Argentine officials but leaving FX and rates volatile.