Caputo Announces US Commitment to Continue Purchasing Pesos

Economy Minister Luis Caputo has assured that the US commitment to purchase Argentine pesos remains unwavering. This declaration comes as President Javier Milei prepares for upcoming meetings in Washington, particularly ahead of Argentina’s midterm elections.

US Commitment to Argentine Pesos

In an interview with Buenos Aires’ LN+, Caputo stated that the US Treasury is prepared to continue supporting Argentina by purchasing pesos and bonds. He emphasized that all options for assistance are currently being considered.

Statements from Luis Caputo

• “Today, the world’s greatest power says: ‘Argentines, we will do whatever it takes to make things right for you,’” Caputo remarked.
• He confirmed that the deal with the US Treasury does not indicate plans for dollarisation or a significant peso devaluation.
• Caputo suggested the maintenance of Argentina’s current currency band regime following the midterm elections on October 26.

Context and Recent Developments

These comments arrive just before a significant meeting on October 14 between President Milei and US President Donald Trump. Investors are closely scrutinizing the midterm elections for clues about Milei’s political strength in these challenging economic times.

Last week, the US promptly intervened in Argentina’s economy by offering $20 billion in financing and executing rare currency market measures to stabilize the peso, which had faced steep declines. This intervention included direct purchases of pesos after local authorities struggled to control the currency’s slide independently.

Impact of US Support

Before the US intervention, Argentina’s Treasury had already expended $1.8 billion attempting to bolster the peso’s value. Caputo reassured that the US assistance should not disrupt Argentina’s $18 billion currency swap line with China, which was partially renewed earlier in October.

The financial markets in Argentina are set to reopen following a public holiday, which could prompt further insights into how these international agreements affect the national economy.