\t\t\t \t\t\t\t\t \t\t\t\t\t The Central Bank of Argentina has reached an agreement with the US Treasury for a US$20 billion swap line, it announced on Monday morning. The swap will allow the country \u201cto respond to conditions that could lead to episodes of volatility in the foreign exchange and capital markets.\u201d<\/p>\n
The agreement was communicated to the press through a statement in Argentina. Details of the financial terms of the loan have not been disclosed and, as with Argentina\u2019s swap with China, remain confidential.<\/p>\n
\u201cThe purpose of this agreement is to contribute to Argentina\u2019s macroeconomic stability, with special emphasis on preserving price stability and promoting sustainable economic growth,\u201d the government said.<\/p>\n
\u201cThis agreement is part of a comprehensive strategy that reinforces Argentina\u2019s monetary policy and strengthens the Central Bank\u2019s ability to respond to conditions that could lead to episodes of volatility in the exchange and currency markets,\u201d the statement read.<\/p>\n
The Central Bank highlighted that the operations will allow \u201cexpanding the set of monetary and exchange policy instruments available, including strengthening the liquidity of its international reserves.\u201d<\/p>\n
In an interview published on Monday, Milei said that Argentina would use the swap line to make 2026 debt payments in case the country cannot operate in the forex market \u201cdue to the country risk being too high.\u201d<\/p>\n
\u201cThat would be taking debt to pay for debt,\u201d he told Tucum\u00e1n\u2019s Canal 8 TV station.<\/p>\n
Economic hardship In recent weeks, after markets raised doubts over the sustainability of Argentina\u2019s economic plan, the government has been depleting its scarce international reserves to contain a run on the peso. In late September, Milei met in New York with U.S. President Donald Trump, his main international ally. After that short meeting, the U.S. Treasury announced it would grant a full-on bailout for Argentina.<\/p>\n
After the announcements, the U.S. began intervening directly in Argentina\u2019s foreign exchange market. Even though that support needed to be strong enough to stabilize the currency, volatility persists.<\/p>\n
Last Friday, even with the U.S. Treasury buying pesos, the peso plunged across all markets \u2014 the official wholesale rate was up 3.8%, from AR$1,446 on Thursday to AR$1,455 on Friday, while the blue-chip swap rate went from AR$1,491 to AR$1,543.7, a 3.5% variation.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Central Bank of Argentina has reached an agreement with the US Treasury for a US$20 billion swap line, it announced on Monday morning. The swap will allow the country \u201cto respond to conditions that could lead to episodes of volatility in the foreign exchange and capital markets.\u201d The agreement was communicated to the press […]<\/p>\n","protected":false},"author":10,"featured_media":1508,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62,42,59],"tags":[95,96,86],"class_list":["post-1507","post","type-post","status-publish","format-standard","has-post-thumbnail","category-dollar-peso","category-economics","category-politics","tag-dollar-peso","tag-economics","tag-politics"],"_links":{"self":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/posts\/1507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/comments?post=1507"}],"version-history":[{"count":0,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/posts\/1507\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/media\/1508"}],"wp:attachment":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/media?parent=1507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/categories?post=1507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/tags?post=1507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}