Overview
- Treasury Secretary Scott Bessent said the United States stands ready to help stabilize Argentina within its legal authority, citing potential swap lines, direct FX purchases and ESF buys of dollar bonds.
- Bessent and President Donald Trump were set to meet President Javier Milei in New York to discuss the plan, with further details expected afterward, according to official statements.
- Argentina’s central bank has sold large amounts of dollars to support the currency, including a $678 million single-day sale and about $1.1 billion over three days, as net reserves fell below $20 billion.
- The IMF has backed Milei’s fiscal tightening with a $20 billion program and a $2 billion August disbursement, while warning that targets to rebuild net reserves were missed due to heavy outflows.
- Seeking hard-currency inflows, the government scrapped grain export tariffs, as recent political setbacks and corruption allegations ahead of October legislative elections heightened market anxiety.