U.S. Treasury Pledges Broad Support to Argentina

U.S. Treasury Secretary Scott Bessent said the United States stands ready to provide comprehensive financial support to Argentina, including central bank swap lines, direct currency purchases, loans to the central bank, and purchases of U.S.-dollar–denominated Argentine debt via the Treasury’s Exchange Stabilization Fund. Bessent said the Treasury could buy Argentine USD bonds in primary and secondary markets and disclosed negotiations for a roughly $20 billion swap line as part of broader stabilization measures. The pledge followed a sharp selloff in the peso, stocks and bonds after President Javier Milei’s coalition suffered a provincial election defeat ahead of nationwide legislative elections on Oct. 26, and came as Milei met with President Trump and Bessent at the U.N. General Assembly. Bessent also indicated substantial private-sector foreign direct investment from U.S. companies could depend on a positive election outcome, and markets rallied on the announcement. The intervention underscores Argentina’s strategic importance to the U.S., from geopolitical competition with China to lithium resources, and arrives as Argentina faces large near-term debt obligations and ongoing IMF engagement.