U.S. Treasury Secretary Bessent: Today we directly purchased Argentine pesos

Bessent: The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets Bessent: Additionally, we have finalized a $20 billion currency swap framework with Argentina’s central bank Bessent: We also discussed Argentina’s investment incentives, and U.S. tools to powerfully support investment in our strategic partners U.S. Treasury Secretary Bessent: Today we directly purchased Argentine pesos Bessent: The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets Bessent: Additionally, we have finalized a $20 billion currency swap framework with Argentina’s central bank Bessent: We also discussed Argentina’s investment incentives, and U.S. tools to powerfully support investment in our strategic partners

The U.S. Treasury has taken significant steps to provide stability to Argentine markets, with Secretary Scott Bessent announcing a series of exceptional measures. In a press conference, Bessent emphasized the U.S. commitment to supporting Argentina, a key ally in Latin America, amidst economic turmoil.

Bessent revealed that the U.S. Treasury is prepared to take immediate and exceptional measures to stabilize markets. Additionally, a $20 billion currency swap framework has been finalized with Argentina’s central bank, the Banco Central de la República Argentina (BCRA). This swap line aims to provide liquidity to the BCRA, helping to stabilize the Argentine peso. Bessent also discussed investment incentives and U.S. tools to support strategic partners in Argentina.

In a notable move, the U.S. Treasury directly purchased Argentine pesos, a step intended to bolster the peso’s value and provide immediate relief to the Argentine economy. This intervention comes amid concerns about the peso's devaluation and the upcoming legislative elections in Argentina.

The measures announced by Bessent are part of a broader strategy to support Argentina and its president, Javier Milei, whose administration has faced significant economic challenges. The U.S. intervention is seen as a temporary bridge to the elections, with a more flexible foreign-exchange regime expected afterward.

While these measures aim to provide short-term stability, the long-term success of Argentina's economic program remains uncertain. The country’s political polarization and legacy of instability pose significant challenges. The U.S. effort to support Argentina is driven by political affinity with President Donald Trump rather than genuine national interest, and the effectiveness of these measures remains to be seen.