Overview

• The move, announced by Treasury Secretary Scott Bessent, combined direct peso purchases with a $20 billion currency swap line with Argentina’s central bank.
• Transactions were executed through Santander, Citi and JPMorgan as dollar exchange rates fell sharply and Argentine bonds and equities rallied, with some gains reaching double digits.
• Democratic lawmakers led by Sen. Elizabeth Warren criticized the action and introduced a bill to curb Treasury’s use of the Exchange Stabilization Fund, while reporting raised potential conflict-of-interest questions involving major asset managers.
• President Javier Milei publicly thanked Donald Trump for the backing, and Argentina’s ruling coalition replaced José Luis Espert with Diego Santilli atop the Buenos Aires congressional list following Espert’s resignation.
• Economists say the calm could be temporary, noting there are 10 trading days until the Oct. 26 legislative elections and warning that recent interventions and renewed currency controls signal persistent fragility.