U.S. Treasury Buys Argentine Pesos via Blue-Chip Swap and Spot Market

Overview

• Treasury Secretary Scott Bessent said Thursday’s operations included purchases in the parallel blue-chip swap and on the spot market.
• The IMF welcomed the move and said its staff is coordinating actions with Washington and Buenos Aires to support stability.
• Despite the announcement, the peso weakened and traded near 1,465 per dollar at midday, reflecting ongoing volatility.
• Argentine dollar bonds edged higher after Bessent’s post, with 2035 notes reversing earlier losses, according to Bloomberg.
• Bessent’s message marked his first public disclosure of such currency-market intervention as the U.S. has pledged up to $40 billion, with President Trump warning support hinges on the election outcome.