Economy Minister Luis Caputo said the US Treasury’s backstop of Argentina’s peso is unflinching as President Javier Milei prepares to travel to Washington ahead of a crucial midterm vote.
The US “is willing to continue buying pesos and bonds, and all options are on the table,” Economy Minister Luis Caputo said Sunday in an interview with Buenos Aires-based TV channel LN+. “Today, the world’s greatest power says: ‘Argentines, we will do whatever it takes to make things right for you.’”
The comments come ahead of a planned October 14 meeting between Milei and US President Donald Trump at the White House and two weeks out from midterm elections that investors are closely monitoring for indications of the Argentine leader’s political strength.
Last week, the US moved swiftly to stabilise Argentina’s economy, offering US$20 billion in financing and carrying out a rare currency market intervention to shore up the peso after weeks of steep declines. The US Treasury also directly purchased pesos in a move that followed unsuccessful efforts by Argentine authorities to stem the slide on their own.
Caputo said that the deal with the US Treasury doesn’t imply dollarisation or a devaluation of the peso. He suggested Argentina will maintain its current currency band regime after the October 26 midterm elections.
He added that the US intervention shouldn’t affect Argentina’s US$18-billion currency swap line with China, which was partially renewed earlier this month.
Before Washington stepped into the market, Argentina’s Treasury had already spent US$1.8 billion trying to support the peso. The nation’s markets reopen Monday after a public holiday Friday.
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by Oscar Medina, Bloomberg
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