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U.S. Confirms Argentina Swap Activation as Peso Bands Hold and Treasury Starts Dollar Buys

The activation creates a confidential liability to Washington, raising questions over thin net reserves despite a market bounce.

Overview

  • U.S. Treasury Secretary Scott Bessent said a portion of the bilateral swap was activated to unwind pre‑election market support and that the U.S. earned a profit.
  • Officials have not disclosed the size or terms under a confidentiality agreement, though market estimates suggest roughly USD 2.1–2.7 billion was involved.
  • Argentina’s wholesale dollar slid to about $1,413, pulling roughly 6% below the band ceiling after brushing it last week under the managed‑bands regime.
  • The Argentine Treasury conducted a first on‑market test buy of about USD 64 million to begin rebuilding reserves without pressuring the ceiling.
  • Economy Minister Luis Caputo reiterated the bands will remain, flagged a potential crawl adjustment to 1–1.5% monthly, promised a detailed reserve‑build and debt‑buyback plan within about 30 days, and markets rallied with risk country below 600 even as analysts warn net reserves may be critically low.