U.S. finalizes $20B currency swap framework with Argentina, directly buys pesos

[Argentine and US banknotes]
Edsel Querini/iStock via Getty Images

The U.S. Treasury has finalized a $20B currency swap framework with Argentina and directly purchased Argentine pesos (ARS:USD [https://seekingalpha.com/symbol/ARS:USD]), sending the country's stocks soaring on Thursday.

Treasury Secretary Scott Bessent announced the actions following four days of meetings with Argentine Finance Minister Luis Caputo in the U.S.

"We discussed Argentina's strong economic fundamentals, including structural changes already underway that will generate significant dollar-denominated exports and foreign exchange reserves," Bessent posted on X. "The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets."

In an appearance on _Fox News_, Bessent insisted that the actions were not a bailout. "There's no money being transferred… the ESF has never lost money, it's not going to lose money here," he added [https://x.com/IngrahamAngle/status/1976436498393333848], referring to the Exchange Stabilization Fund - the Treasury's emergency reserve fund.

Argentina's benchmark Merval Index (MERVAL [https://seekingalpha.com/symbol/MERVAL]) ended 5.8% higher on Thursday, while the S&P Argentina ADR Index (BKAR:IND [https://seekingalpha.com/symbol/BKAR:IND]), which tracks Argentine stocks traded in U.S. exchanges, closed up 13%.

Notable Argentine stock gainers on Thursday: BBVA Argentina (NYSE:BBAR [https://seekingalpha.com/symbol/BBAR]) +17%, Banco Macro (NYSE:BMA [https://seekingalpha.com/symbol/BMA]) +17.5%, Grupo Financiero Galicia (NASDAQ:GGAL [https://seekingalpha.com/symbol/GGAL]) +21.7%, and Grupo Supervielle (NYSE:SUPV [https://seekingalpha.com/symbol/SUPV]) +27.3%.

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