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2h ago

U.S. Expands Argentina Support Package to $40 Billion as Treasury Buys Pesos

Treasury says aid depends on policy direction rather than cutting China ties.

El secretario del Tesoro, Scott Bessent, en la Casa Blanca.
Scott Bessent aseguró que habría hasta US$ 40.000 millones para la Argentina. REUTERS/Ken Cedeno
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Overview

  • Treasury Secretary Scott Bessent confirmed fresh intervention in Argentina’s FX market, saying the U.S. bought pesos on Wednesday without disclosing the size of the operation.
  • Bessent said total support could reach $40 billion by pairing a $20 billion Treasury–BCRA swap with a proposed $20 billion private credit facility oriented to Argentina’s debt market.
  • The additional facility is being discussed with global banks and sovereign funds and could involve purchases of Argentine debt, with JPMorgan reported as a potential participant.
  • Bessent clarified that U.S. assistance is not conditioned on ending Argentina’s currency swap with China, noting concerns focus on Chinese-linked ports, military sites and observation centers.
  • Markets swung after President Trump linked generosity to election outcomes, then partially recovered following Treasury’s interventions and statements, while structuring details using IMF SDRs remain under negotiation.