By Bloomberg

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US Treasury Secretary Scott Bessent announced on Thursday that the United States has agreed to extend major assistance to Argentina, after the embattled South American nation failed on its own to stabilise its exchange rate.
Washington has finalised a US$20 billion currency swap framework with Argentina’s central bank, Bessent said in a social media post.
He also said that the US on Thursday directly bought Argentine pesos as part of its support for the country – a step that American authorities have rarely taken in recent decades.
“The US Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets,” Bessent said.
The announcements follow several days of talks with Argentina’s economic team, including Economy Minister Luis Caputo, who also met this week with International Monetary Fund Managing Director Kristalina Georgieva.

Bessent said Caputo “informed me of his close coordination with the IMF on Argentina’s commitments under its programme”.
While speculation had risen before Bessent’s announcement that the US might press Argentina to allow a free float of the peso, the Treasury chief said the country’s “exchange rate band remains fit for purpose”.
Argentina’s dollar bonds jumped across the curve, with some of the nation’s most liquid notes up more than 4 cents on the dollar to session highs amid the US Treasury involvement news.
The peso, which started the day down 2.7 per cent as local authorities stayed out of the market for the first time in more than a week, ended the day 0.7 per cent higher against the dollar amid the US intervention.
“Argentina’s policies, when anchored on fiscal discipline, are sound,” Bessent said. He also said he discussed potential investment incentives for US companies who may want to do business in Argentina.