On September 22, US Treasury Secretary Scott Bessent pledged “large and forceful” action to stabilize Argentina’s currency, invoking the rarely used $219.5 billion Exchange Stabilization Fund (ESF). The promise—backed by an upcoming meeting with President Donald Trump and Milei in New York—lifted Argentine bonds, equities, and the peso after weeks of steep losses.
Bessent signaled that Washington could deploy swap lines, direct currency purchases, or dollar-debt buybacks to prop up Argentina’s financial defenses. Analysts say the ESF’s roughly $30 billion in liquid assets is more than enough for a short-term rescue.
The move marks America’s most assertive foreign currency backstop since the 1990s, when it stabilized Mexico, Brazil, and Uruguay during crises. Markets read the announcement as a geopolitical show of support for Milei, whom Trump openly backs.
But the relief may be temporary. Argentina faces midterm elections in October, and Milei’s weak congressional standing and voter discontent threaten both his reform program and his political survival. Economists warn that if polling worsens, the peso could face fresh turmoil—testing both U.S. resolve and investor patience with Argentina’s long history of defaults and inflation.
