Overview
- Treasury Secretary Scott Bessent said the U.S. stands ready to extend a $20 billion swap line, purchase Argentina’s dollar bonds, and deliver standby credit from the Exchange Stabilization Fund.
- He framed the measures as a temporary “bridge to the election” after a selloff tied to Milei’s provincial defeats and a rapid burn of central bank reserves to defend the peso.
- Argentine assets rebounded on the U.S. signal, but investors and analysts say the rescue’s durability hinges on the October 26 vote and continued support for Milei’s reforms.
- U.S. officials have pressed Buenos Aires to roll back its currency swap with China, with future support linked to reducing reliance on Beijing’s credit line.
- The package has drawn domestic criticism as inconsistent with “America First,” with lawmakers and farm groups questioning a bailout for a political ally ahead of Argentina’s vote.