Argentina’s stocks rose 6% after U.S. Treasury Secretary Scott Bessent pledged “all options for stabilization” to President Javier Milei, including potential currency swap lines and U.S. dollar-denominated debt purchases. Bessent and President Donald Trump are set to meet Milei in New York on Tuesday to discuss the details.
- Argentina’s dollar bonds due 2035 jumped nearly seven cents to trade above 54 cents after Bessent’s comments.
- Support would complement Argentina’s $20 billion IMF program, finalized in April.
- The central bank sold $1.1 billion in reserves last week to defend the peso, while Milei’s government imposed a temporary halt on crop tariff exports to boost dollar inflows.
- Political risks have risen after a bribery scandal involving Milei’s sister, a key provincial election loss, and Congress overturning several vetoes.
- Argentina’s economy contracted in Q2, with analysts expecting further declines in Q3. Surveys show higher unemployment and more planned layoffs in manufacturing and construction.
- Midterm elections on October 26 are shaping up as Milei’s biggest political test since taking office in 2023.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
