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U.S. Expands Argentina Support Package to $40 Billion as Treasury Buys Pesos

Treasury says aid depends on policy direction rather than cutting China ties.

Overview

  • Treasury Secretary Scott Bessent confirmed fresh intervention in Argentina’s FX market, saying the U.S. bought pesos on Wednesday without disclosing the size of the operation.
  • Bessent said total support could reach $40 billion by pairing a $20 billion TreasuryBCRA swap with a proposed $20 billion private credit facility oriented to Argentina’s debt market.
  • The additional facility is being discussed with global banks and sovereign funds and could involve purchases of Argentine debt, with JPMorgan reported as a potential participant.
  • Bessent clarified that U.S. assistance is not conditioned on ending Argentina’s currency swap with China, noting concerns focus on Chinese-linked ports, military sites and observation centers.
  • Markets swung after President Trump linked generosity to election outcomes, then partially recovered following Treasury’s interventions and statements, while structuring details using IMF SDRs remain under negotiation.