US EditionBessent says US bought pesos again, currency slips
The US Treasury bought Argentine pesos in official and parallel markets to counter a 7% peso decline after political setbacks for President Milei's party, signaling strong support.
- Friday, US Treasury Secretary Scott Bessent said the United States Treasury bought pesos in the blue chip swap and spot markets, disclosing parallel‑market action on X without stating amounts.
- Political setbacks for Milei pushed the peso into a run from September 8, erasing seven percent after Milei's party lost last month's provincial elections.
- Working with banks, the Treasury executed peso purchases, with Citigroup Inc selling pesos to the Federal Reserve and Bessent lining up a US$20‑billion swap line and private‑sector facility.
- Despite purchases, the peso fell sharply as it opened at 1,465, traded at 1,485, and hit 1,475, with the overnight collateralised peso repo rate easing to around 53 percent.
- Analysts cautioned the US move may be only temporary as Capital Economics warned the peso remains overvalued by 30 percent, while CFK said `the economy is being controlled remotely from the United States,' and total US assistance now stands at $40 billion.
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87 Articles
The fall of the Argentine peso accelerated on Friday even after the United States confirmed that it has continued to buy the currency, fueling doubts as to whether the bailout of US$20 billion from Donald Trump's administration will prevent President Javier Milei from making another painful devaluation.The Treasury Secretary, Scott Bessent, announced that the US intervened on Thursday to buy pesos both in the parallel market and in the official …
UPDATE 2-Bessent says US bought pesos again, currency slips
UPDATE 2-Bessent says US bought pesos again, currency slips The U.S. Treasury bought Argentine pesos in the spot and "Blue Chip Swap" markets on Thursday and it continues to monitor all markets, Treasury Secretary Scott Bessent said on Friday."Treasury is monitoring all markets, and we have the capacity to act with flexibility and with force to stabilize Argentina," he said in a post on X. It was the first announcement of participation in the "b…
BUENOS AIRES (AP) — Amid a volatile environment that has failed to dissipate the announced U.S. financial support for Argentina, the Treasury Department confirmed Friday a new direct intervention in the Argentine foreign exchange market…
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