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U.S. Finalizes $20 Billion Argentina Swap, Makes Rare Direct Peso Purchase

Treasury says the rare move aims to steady markets during Argentina’s liquidity crunch.

Overview

  • Treasury Secretary Scott Bessent said the U.S. completed a $20 billion currency-swap framework with Argentina’s central bank and confirmed direct peso purchases after four days of talks in Washington.
  • Officials described the action as coordinated with the IMF and “not a bailout,” while declining to disclose the size of the purchase or the swap’s structure.
  • Markets rallied on the announcement, with the peso strengthening before the close and Argentine dollar bonds climbing sharply.
  • Backlash grew in the U.S. as senators introduced a No Argentina Bailout Act and farm groups warned the support harms American soybean producers after Argentina suspended export taxes and sold to China.
  • Next steps include a TrumpMilei meeting on Oct. 14 and Argentina’s Oct. 26 legislative elections, with further operational details expected next week.