Overview

• Treasury Secretary Scott Bessent said the swap with the Central Bank of Argentina was agreed after four days of talks with Economy Minister Luis Caputo in Washington.
• He confirmed the U.S. directly purchased pesos and said Treasury is prepared to take any exceptional measures needed to ensure market stability.
• The IMF’s Kristalina Georgieva signaled close coordination with the U.S., World Bank and IDB and suggested possible use of Special Drawing Rights.
• Bessent said Argentina’s exchange-rate band remains fit for purpose and tied the backing to fiscal discipline and efforts to attract investment.
• Argentine dollar bonds climbed across the curve and the peso ended stronger after the announcement, signaling a positive market reaction.