Overview

• The Treasury is negotiating a $20 billion dollar-for-peso swap line, with readiness to buy Argentine dollar bonds and deploy Exchange Stabilization Fund standby credit.
• Bessent publicly framed the effort as a temporary confidence boost into the congressional contests after a sharp market selloff.
• Argentina’s central bank spent more than $1 billion last week defending the peso as stocks and bonds slumped following Milei-aligned losses in local elections.
• Markets have shown tentative stabilization since the U.S. signaled support, though analysts warn the United States could face pressure for deeper aid if the confidence shock fails.
• Critics describe the move as politically driven to bolster President Javier Milei, who is backed by President Donald Trump and has faced corruption allegations and public backlash to austerity reforms.