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6h ago

U.S. Confirms $20 Billion Swap With Argentina and Begins Buying Pesos

The intervention seeks to steady Argentina’s strained foreign-exchange market before the October 26 legislative vote.

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Javier Milei con Scott Bessent, el secretario del Tesoro que respaldará al gobierno argentino.
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Reunión en Nueva York: Javier Milei, Kristalina Georgieva del FMI y Luis Caputo.

Overview

  • Treasury Secretary Scott Bessent said the U.S. finalized a $20 billion currency-swap with Argentina’s central bank and has already purchased pesos, describing the situation as one of “grave illiquidity.”
  • Bessent signaled readiness to take additional exceptional measures to stabilize markets and endorsed Argentina’s exchange-rate band as “appropriate for its purpose.”
  • Initial market operations were carried out through major banks including Santander, Citi and JPMorgan, according to market reports.
  • IMF Managing Director Kristalina Georgieva said decisions are expected soon, mentioned possible use of U.S. Special Drawing Rights, and suggested this could be the Fund’s last program with Argentina.
  • Argentine assets rallied as Economy Minister Luis Caputo returns to Buenos Aires, while Oxford Economics and Pantheon cautioned the support is a short-term band-aid and key conditions and details remain undisclosed.