Overview

• Treasury Secretary Scott Bessent said the U.S. finalized a $20 billion currency-swap with Argentina’s central bank and has already purchased pesos, describing the situation as one of “grave illiquidity.”
• Bessent signaled readiness to take additional exceptional measures to stabilize markets and endorsed Argentina’s exchange-rate band as “appropriate for its purpose.”
• Initial market operations were carried out through major banks including Santander, Citi and JPMorgan, according to market reports.
• IMF Managing Director Kristalina Georgieva said decisions are expected soon, mentioned possible use of U.S. Special Drawing Rights, and suggested this could be the Fund’s last program with Argentina.
• Argentine assets rallied as Economy Minister Luis Caputo returns to Buenos Aires, while Oxford Economics and Pantheon cautioned the support is a short-term band-aid and key conditions and details remain undisclosed.