Overview
- Treasury Secretary Scott Bessent told Axios on Sunday that the United States could intervene again in Argentina’s markets if needed, reopening a political backstop for President Javier Milei.
- He defended the 2025 operation, saying the Treasury bought pesos and put in place a currency swap line of up to $20 billion that the BCRA used about $2.5 billion of and later repaid, and that the swap returned money to U.S. taxpayers.
- Argentina’s sovereign risk rose to roughly 655 basis points as domestic activity cooled and election-related demand for dollars looms, leaving the country’s financing position fragile despite official claims of large buffers.
- A weak U.S. payrolls report showing only 29,000 jobs in September reduced immediate odds of another Federal Reserve rate hike and could ease funding costs for Argentina, but it does not remove election-year vulnerability.
- Bessent offered no new operation or terms and future U.S. help will depend on Washington’s politics, project approvals for Exim/DFC financing, and limits on Argentina’s reserve tools that may constrain the government’s ability to meet private dollar demand.