The International Monetary Fund (IMF) leadership voiced support for Argentina on Friday, backing the Trump administration's efforts to support Argentine President Javier Milei. Argentina is set to hold midterm elections later this month.

IMF Managing Director Kristalina Georgieva stated that she discussed with U.S. Treasury Secretary Scott Bessent "plans for the United States to provide broad financial assistance to Argentina, including the use of Special Drawing Rights (SDR) held by the United States." SDRs are IMF reserve assets based on a basket of currencies.

Data shows that following Georgieva's statement posted on X, Argentine dollar bonds continued their upward trajectory across the board, with bonds maturing in 2035 touching intraday highs at one point, rising 2 cents to trade above 55 cents per dollar of face value. The Argentine peso had already closed, falling more than 6% for the week, making it the worst performer among emerging markets, despite the Milei government's dollar sales to support the local currency. The peso is widely considered overvalued by the market.

Neither Georgieva nor Bessent provided detailed information about the support mechanisms for Argentina or their timeline. The U.S. Treasury Department did not immediately respond to requests for comment on the IMF chief's social media post.

Argentine Economy Minister Luis Caputo traveled to Washington on Friday to continue talks with Bessent. Bessent had previously indicated discussions with Argentina regarding a $20 billion currency swap facility, though this plan has drawn criticism from some Republicans in Congress.

Caputo maintains that there will be no policy adjustments after the midterm elections, despite analysts' speculation that Argentina may need to completely eliminate foreign exchange controls and allow the peso to float freely without intervention.