Overview

• The U.S. Treasury executed direct peso purchases via Santander, Citi and JPMorgan after Secretary Scott Bessent outlined a $20 billion swap framework with Argentina’s central bank.
• The official and financial-dollar rates fell, Argentine equities rose up to 25% and sovereign bonds gained about 9% following the move.
• Democratic lawmakers criticized the assistance as a political favor, creating uncertainty over the timing and scope of further U.S. support.
• Consultants estimate authorities have spent roughly $10.5 billion since April defending the banded float, leaving limited reserves.
• Rebuilding dollars sold during the latest pressure is projected to take three to five months, signaling that the relief may be short-lived.