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4w ago

U.S. Treasury Negotiates $20 Billion Swap With Argentina, Signals Bond Buys and ESF Backstop

The moves aim to steady markets before Argentina’s Oct. 26 elections.

President Donald Trump meets with Argentine President Javier Milei during the United Nations General Assembly, Tuesday, Sept. 23, 2025, in New York. (AP Photo/Evan Vucci)
Image
A general view of the Obelisk in Buenos Aires, Argentina November 15, 2023. REUTERS/Agustin Marcarian/File Photo
The logo of the Buenos Aires Stock Exchange is seen, in Buenos Aires, Argentina December 18, 2024. REUTERS/Francisco Loureiro/File Photo

Overview

  • Treasury Secretary Scott Bessent said talks are underway on a $20 billion currency swap with the Central Bank of Argentina.
  • The U.S. stands ready to purchase Argentina’s dollar bonds and provide standby credit through the Exchange Stabilization Fund.
  • President Donald Trump met Javier Milei in New York and pledged U.S. help, adding he does not believe Argentina needs a bailout.
  • Argentine assets rallied and the peso strengthened after the announcements, following over $1.1 billion in central bank reserve sales last week to defend the currency.
  • Bessent said some planned U.S. investment could depend on the Oct. 26 results, lawmakers such as Sen. Elizabeth Warren criticized the use of emergency funds, and the World Bank and IDB outlined expanded support.