US, Argentina Sign $20 Billion Swap Deal Amid Deep Peso Rout (1)

Argentina’s central bank and the US Treasury signed a currency swap line for $20 billion, a vote of confidence for President Javier Milei ahead of a crucial midterm election. But with details still scarce, bonds erased initial gains and the peso weakened.

The deal, announced by the Argentine monetary authority on Monday, is a key pillar of a sweeping rescue package Treasury Secretary Scott Bessent put together for Milei in a whatever-it-takes approach to stabilize the volatile South American economy. Beyond the swap, the US has been buying Argentine pesos for the past two weeks, and Bessent said he’s coordinating ...