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8h ago

U.S. Finalizes $20 Billion Currency Swap With Argentina as Treasury Buys Pesos

The move is billed as emergency dollar liquidity for a strained central bank during what Treasury calls acute illiquidity.

Vor einem Monat trafen sich die Präsident Donald Trump (r.) und Javier Milei in New York
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Overview

  • The Treasury began purchasing Argentine pesos on Thursday using the Exchange Stabilization Fund, without disclosing the size of the intervention.
  • The swap was finalized after four days of talks in Washington to let Argentina’s central bank exchange dollars and pesos for short‑term liquidity.
  • Treasury Secretary Scott Bessent described conditions as “acute illiquidity” and said the department is ready to take extraordinary steps to steady markets.
  • Argentine assets rallied on the news, with sovereign bonds up about 10%, equities up roughly 15%, and the peso strengthening.
  • Key terms of the agreement were not released, while President Javier Milei thanked the United States and President Donald Trump ahead of parliamentary elections.