Overview

• Treasury Secretary Scott Bessent lauded Javier Milei at an Atlantic Council event and publicly restated U.S. support.
• Washington opened negotiations on a $20 billion currency swap with Argentina’s central bank and signaled readiness to purchase distressed sovereign debt, with a stand-by credit under consideration and details expected after the October elections.
• Argentine assets rebounded as the peso recovered part of its recent slide and bond and equity prices rose, easing near-term pressure.
• Analysts said the commitments were qualified and timing was undefined, noting that limited reserves, a managed exchange rate and external obligations above $290 billion constrain durability.
• Milei faces mounting political setbacks including congressional pushback on vetoes and executive decrees and a corruption investigation linked to his sister, while some observers view the U.S. offer as a move to counter China’s influence through its existing swap line.