Overview

• Treasury Secretary Scott Bessent said the action followed four days of talks with Economy Minister Luis Caputo and was taken to address acute illiquidity, describing it as an investment rather than a rescue.
• Chief of Cabinet Guillermo Francos said there is no plan to end Argentina’s roughly $18 billion swap line with China and characterized Bessent’s comments about excluding China as preliminary.
• Initial market reaction was positive, with a lower wholesale dollar and a rally in Argentine bonds after the U.S. confirmed direct peso purchases and the swap framework, reportedly executed via a commercial bank.
• Democratic senators introduced the No Argentina Bailout Act to restrict use of the Exchange Stabilization Fund for such operations, and Senator Elizabeth Warren criticized the move.
• Analysts said the package buys time ahead of the October 26 midterm elections and noted IMF coordination, but warned it is a short-term lifeline rather than a solution to structural risks.