Overview

• Treasury Secretary Scott Bessent said the United States is negotiating a $20 billion dollar‑for‑peso swap and stands ready to buy Argentine government bonds.
• Bessent described the effort as a “bridge to the election,” with potential standby credit from the Exchange Stabilization Fund also under consideration.
• Argentina’s peso, stocks, and bonds rebounded after the announcement, following a selloff tied to local election losses for President Javier Milei’s party.
• The central bank recently spent more than $1 billion of reserves to support the peso as investors questioned the durability of Milei’s reform agenda and reacted to corruption allegations involving his sister.
• Analysts warn that if the confidence boost fades, the United States could face pressure to provide larger assistance to Argentina.