U.S. and Argentina Forge Financial Alliance Amid Economic Turmoil
The U.S. is in discussions with Argentina for a $20 billion swap line and is ready to support through bond purchases and standby credit. Secretary Scott Bessent emphasized the U.S.'s commitment to Argentina's economic stability. Argentine leaders expressed gratitude for U.S. support and partnership.
The United States is in talks with Argentina to establish a $20 billion swap line, according to U.S. Treasury Secretary Scott Bessent's statement on Wednesday. The U.S. aims to bolster Argentina's economy by purchasing dollar-denominated bonds and providing standby credit through the Exchange Stabilization Fund.
Bessent assured that measures are in place to combat the actions of speculators threatening Argentina's market. The U.S. is also collaborating with Argentina to address the tax holiday affecting foreign exchange from commodity producers.
Following these announcements, Argentina's government bond prices saw an uptick. Argentine leaders, including President Javier Milei and Economy Minister Luis Caputo, expressed gratitude towards the U.S., highlighting a commitment to a cooperative future.
(With inputs from agencies.)
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