Overview

• Treasury Secretary Scott Bessent announced direct peso purchases and a $20 billion swap framework with Argentina’s central bank, citing a moment of acute illiquidity and coordination with the IMF.
• Bessent said the program is not a rescue and asserted the Exchange Stabilization Fund will not lose money, calling the peso undervalued.
• Markets rallied after the announcement as the wholesale dollar fell and Argentine bonds rose, with reports of commercial banks, including Banco Santander, executing peso purchases.
• Bessent told Fox News that President Javier Milei is committed to removing China from Argentina, while Chief of Cabinet Guillermo Francos said the deal does not require cutting ties with Beijing or ending the existing China swap.
• Democratic senators introduced the No Argentina Bailout Act to restrict ESF use and U.S. farm groups criticized the assistance, as officials in Buenos Aires await Economy Minister Luis Caputo’s briefing on detailed terms; Milei’s White House meeting is set for October 14 and midterm elections for October 26.