The US signalled readiness to intervene in Argentina’s markets, with Treasury Secretary Scott Bessent saying “all options for stabilization are on the table,” a statement that helped spark a sharp rebound in Argentine assets.
Detailing the toolkit under consideration, Bessent said options “may include, but are not limited to, swap lines, direct currency purchases, and purchases of US dollar-denominated government debt from Treasury’s Exchange Stabilization Fund,” calling Argentina “a systemically important US ally.”
In the same thread he added, “Opportunities for private investment remain expansive, and Argentina will be Great Again.”
Markets reacted immediately to the signal: US-listed Argentine stocks jumped more than 10%, international bonds rose over six cents, and the peso firmed about 2% on the day, reversing part of recent losses.
Separately, The Kobeissi Letter noted that local equities had dropped ~10% within 24 hours before rebounding ~8% on the US “lifeline” headlines.
The urgency stems from heavy official support and thin buffers: Argentina’s central bank sold roughly US$1.0–US$1.1 billion in three days last week to defend the peso, including US$678 million on Friday, against liquid foreign reserves of about US$20 billion, according to FT reporting. Debt risk has returned to distressed territory, with spreads near 2,500 bps over US Treasuries.
Macro strain remains acute. After late-2023 peaks above 25% per month (over 300% YoY), monthly inflation has slowed to 2% (34% YoY) by Kobeissi’s estimate, while the peso has lost around 99% of its value over the past decade.
Bessent said he and President Donald Trump will meet President Javier Milei in New York on Tuesday with more detail expected after the session.
Argentina also faces a pivotal midterm election on Oct. 26, a date that could influence sequencing and scale of any measures.
Trump and Milei are both populist politicians who similarly ran and won on nationalist policies.
Information for this story was found via the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
