US Plans $20B Support Boost Argentina Stocks Bonds Peso

U.S. Treasury Secretary Scott Bessent has pledged strong financial support for Argentina, including potential $20 billion credit lines, currency swap agreements, and purchases of U.S. dollar-denominated Argentine bonds, to help stabilize the country's economy ahead of the October midterm elections. This intervention has sparked significant rallies in Argentine financial markets, with stocks and bonds surging and the peso strengthening, as investors gain confidence from the U.S. commitment. The Trump administration views Argentina as a strategic ally in Latin America, aiming to counter China's influence in the region. Argentine President Javier Milei and President Donald Trump are scheduled to meet, signaling deepening bilateral ties. Despite these positive market reactions, analysts caution that such support does not address Argentina's fundamental economic challenges, such as the misaligned exchange rate and underlying fiscal issues. The Argentine government's recent removal of export taxes on grains further aims to bolster the economy during a politically sensitive period.