U.S. and Argentina: A Billion-Dollar Economic Lifeline
The U.S. is negotiating a $20 billion swap line with Argentina's central bank to stabilize the country's economy. U.S. Treasury Secretary Scott Bessent confirmed American support for Argentina and President Javier Milei. This includes purchasing U.S. dollar-denominated bonds and providing standby credit from the Exchange Stabilization Fund.
The United States is in talks with Argentina's central bank regarding a $20 billion swap line aimed at bolstering the South American country's economy. The U.S. Treasury Secretary Scott Bessent announced on Wednesday through a post on X that America stands ready to provide the necessary support.
Bessent elaborated that the U.S. plans to purchase Argentina's U.S. dollar-denominated bonds if conditions require. Further assistance will be extended in the form of standby credit from the Exchange Stabilization Fund. He also affirmed the U.S.'s readiness to buy Argentine government debt, both secondary and primary.
Following Bessent's disclosure, Argentine financial assets surged, especially after the peso's recent stabilization. Capital inflows are anticipated if election outcomes prove favorable. President Milei's right-wing party plans to strengthen its parliamentary standing in the upcoming elections on October 26, with U.S. support seen as a potential economic boon.
(With inputs from agencies.)
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