United States Bought Argentine Pesos and Confirmed $20B Swap
He also said he looks forward to the October 14 meeting between Trump and Milei, and to meeting Caputo again during the IMF Annual Meetings.
Quick overview
- U.S. Treasury Secretary Scott Bessent confirmed direct intervention in Argentina's FX market by purchasing Argentine pesos.
- A $20 billion currency swap agreement was announced with the Central Bank of Argentina, supporting the country's exchange rate band system.
- Bessent highlighted Argentina's solid economic fundamentals and ongoing reforms, while acknowledging the country's severe illiquidity.
- He expressed strong U.S. support for Argentina's political stability and reform agenda, emphasizing the importance of a stable Argentina for the Western Hemisphere.
After days of silence and at the end of Economy Minister Luis Caputo’s trip to Washington, U.S. Treasury Secretary Scott Bessent confirmed direct intervention in Argentina’s FX market: “Today we directly bought Argentine pesos,” he said on X.
He also announced a $20 billion currency swap agreement with the Central Bank of Argentina (BCRA) and reaffirmed support for Argentina’s exchange rate band system, dispelling speculation that it would be changed after the October 26 midterm elections.
Bessent revealed that the U.S. Treasury held four days of intense meetings with Caputo and his team, highlighting Argentina’s “solid economic fundamentals” and ongoing structural reforms aimed at boosting dollar exports and FX reserves. However, he acknowledged that “Argentina is facing a moment of severe illiquidity.”
Unprecedented U.S. backing
Bessent offered strong support, stating:
“The U.S. Treasury is prepared, immediately, to take exceptional measures to stabilize the markets.” He emphasized that President Donald Trump’s “America First economic leadership” is committed to strengthening allies that welcome fair trade and U.S. investment.
Political stability and reform agenda
Bessent said that there is broad political consensus in Argentina for the second half of President Javier Milei’s term, praising efforts to achieve “fiscally sound economic freedom” through tax cuts, investment growth, job creation, and cooperation with allies.
He argued that Argentina’s reform success is of systemic importance, adding that a stable Argentina contributes to a prosperous Western Hemisphere and is “in the strategic interest of the United States… a bipartisan priority.”
He also said he looks forward to the October 14 meeting between Trump and Milei, and to meeting Caputo again during the IMF Annual Meetings.
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