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U.S. Confirms $872 Million SDR Sale to Argentina as Private Financing Wavers

The transaction covered an IMF installment, leaving uncertain how Argentina will fund a large January payment.

Overview

  • U.S. Treasury records show a mid‑October transfer of 640.8 million SDRs (about $872 million) to Argentina, which the government used to make a $796 million IMF payment on November 7.
  • Reports detail earlier U.S. currency operations of roughly $2 billion in peso purchases tied to a swap framework, later unwound as part of activating that support.
  • The Wall Street Journal reported that a previously discussed $20 billion private-bank package has been put on hold, with a smaller $5 billion short‑term repo under consideration.
  • Economy Minister Luis Caputo first denied any $20 billion rescue with U.S. banks, then said talks for additional support existed but the government opted not to proceed after perceived post‑election market improvement.
  • Markets fell on the uncertainty, with Argentine stocks and sovereign bonds declining and the country risk premium rising to around 650–660 basis points, while a roughly $13 billion gap to IMF reserve targets persists.