WASHINGTON: The United States stands ready to provide substantial support to stabilise Argentina’s economy, according to Treasury Secretary Scott Bessent.
Bessent confirmed that all options are being considered, including swap lines and direct purchases of Argentine pesos or dollar-denominated government debt.
He emphasised that any US action would be both large and forceful, reflecting the administration’s strong resolve.
No specific steps will be finalised until after a crucial meeting between President Donald Trump, Bessent, and Argentine President Javier Milei in New York.
The high-level discussion is scheduled for Tuesday on the sidelines of the United Nations General Assembly.
Bessent indicated that the timing of any intervention would depend on market conditions and the scale of capital outflows from Argentina.
He expressed full confidence in President Milei and his economic team, praising their implementation of reforms.
The Treasury Secretary downplayed risks of financial contagion, stating that Argentina’s reform progress is going quite well.
US support will not impose any new conditions beyond Argentina’s existing commitments to its International Monetary Fund loan programme.
Bessent clarified that the assistance is not conditional on additional demands from the United States.
Argentina secured a new 20 billion dollar four-year loan agreement with the IMF in April, which required the removal of currency controls.
Market volatility has increased following a significant electoral setback for Milei’s party in Buenos Aires province.
The Argentine central bank recently conducted its largest daily dollar sale in nearly six years to support the peso.
Last Friday’s intervention involved 678 million dollars, bringing three-day total sales to 1.1 billion dollars.
Bessent confirmed he spoke with IMF Managing Director Kristalina Georgieva and is satisfied with the fund’s position.
He denied that US market positions or consultations with Wall Street influenced the decision to support Argentina.
The Treasury Secretary also stated he has no knowledge of any involvement from billionaire Elon Musk in the matter.
Bessent attributed the current market anxiety to investor skittishness rooted in Argentina’s previous economic management.
He suggested that risk management or a rush to exit investments ahead of elections may be driving the volatility.
It remains unclear whether market dynamics will ultimately strengthen or undermine support for Milei’s economic policies. – Reuters