The U.S. government has taken decisive measures to support Argentina's economic reforms, finalizing a $20 billion currency swap framework and directly intervening in the market through peso purchases.

On October 9th, U.S. Treasury Secretary Bessent disclosed via social media that the Treasury Department had directly purchased Argentine pesos in the spot market. He stated this move was to "take swift action" in support of the economic reform agenda being pursued by Argentine President Milei.

Bessent simultaneously announced that the $20 billion currency swap framework between the U.S. and Argentina's central bank has been finalized. This series of actions clearly demonstrates the White House's commitment to financially backing its political ally, with Bessent describing Milei's reform agenda as "systemically important."

Boosted by this news, Argentine sovereign bonds maturing in 2035 rose 4.3 cents to above 60 cents, reaching their highest level in two weeks. The peso strengthened 0.7% against the dollar, reversing earlier losses of up to 2.7%.

**Swap Framework and Direct Intervention**

The U.S. Treasury Department has concluded four days of intensive meetings in Washington with Argentine Economy Minister Luis Caputo and his team. The core outcome was finalizing the $20 billion currency swap framework agreement.

Bessent emphasized:

"The U.S. Treasury Department stands ready to immediately take any necessary extraordinary measures to provide market stability."

Beyond the swap agreement, the Treasury Department's direct market intervention has drawn significant attention. Bessent explicitly stated:

"Today we directly purchased Argentine pesos."

This move is viewed as direct U.S. Treasury intervention in Argentina's foreign exchange market. Bessent noted that Argentina faces "severe liquidity shortages" and declared "only the United States can act swiftly. And we will."

**Strong Political Endorsement**

Bessent's statements carried strong signals of political support.

He emphasized that President Trump's "America First" economic leadership is committed to strengthening allies that welcome fair trade and American investment. He stated:

"President Milei's leadership has American business leaders eager to bring the U.S. and Argentine economies closer together."

Bessent positioned the success of Argentina's reform agenda as "systemically important," arguing that a strong, stable Argentina serves U.S. strategic interests and helps consolidate Western Hemisphere prosperity.

He also revealed discussions with Minister Caputo about Argentina's investment incentives and U.S. tools for supporting strategic partner investments.

Despite the positive U.S. stance, potential risks exist. Critics warn that the Argentine peso may be overvalued. Should the peso depreciate in the future, U.S. taxpayers participating in the currency swap could face losses.

However, Bessent expressed confidence in Argentina's economic policies, noting they are based on fiscal discipline and are sound, with the exchange rate range remaining "fit for purpose."

He also mentioned that Minister Caputo briefed him on Argentina's close coordination with the International Monetary Fund regarding program commitments.

Looking ahead, Bessent expressed anticipation for the meeting between President Trump and President Milei on October 14th, and plans to meet again with Minister Caputo during the IMF annual meetings. Analysts view these high-level interactions as signaling continued deepening of economic cooperation and political coordination between the two countries.